Latest NCR Debt Review Removal Guidelines

The National Debt Review Center

NCR Debt Review Removal Guidelines

The National Credit Regulator issued Circular 02 of 2022, which aims to inform the credit industry about the procedural changes for updating the Debt Help System with the specified status codes, as a measure to counteract certain practices for the benefit of consumers.

This NCR debt review removal guideline not only aim to inform us about the DHS updates but to also give clarity on the 2021 Withdrawal guidelines and the required documents when updating debt review removal status codes.

This therefore meant that any update for status codes A1, B, F1, F2, G, G1, I and J will be disabled, and no debt counsellor can affect such updates on the DHS system. To update consumer records to any of these status codes, the debt counsellor must submit relevant documents to the regulator.

What does this NCR debt review removal guideline mean for Debt Review Removal Applications.

The NCR debt review removal guideline confirm that applications for debt review removal are allowed; however, debt counsellors will no longer manually update the DHS. Additionally, specific documentation is required for each debt review removal option.

Here is a list of the necessary documents for various debt review removal scenarios.

To update to Status Code B, indicating an assessment has led to rejection, the following are required:

• A duly signed Form 16.
• A clear record of the date the consumer provided all information and documents to the debt counsellor, as per regulation 24(1)(b) of the National Credit Act (NCA);
• An affordability assessment demonstrating the consumer is not over-indebted; and
• An issued Form 17.2(a) served on the consumer and all credit providers.

To update to Status Code F1, the following documents must be in order:

Status F1 means that all restructured debts have been settled except the mortgage agreement.

• A duly certified Form 19.
• All paid-up or prescription letters.
• An issued Form 17.2(c).
• The restructuring proposal and/or a granted court order.
• Proof that the mortgage agreement is not in arrears; and
• A statement from the debt counsellor confirming the consumer’s compliance with sections 71(1)(b) and 72 of the NCA.

To update to Status Code F2, indicating that all restructured debts have been settled, the following documents are required:

• A duly certified Form 19.
• All paid-up/prescription letters;
• An issued Form 17.2(c).
• The restructuring proposal and/or the court order that was granted.

For update to Status Code G: The magistrate has overturned the debt review court order, and the consumer’s application of opposing debt review has resulted in a declaration of not being over-indebted. [Form 17.W(c)]

• Notice of motion with clear court details, case number and date of hearing.
• Founding affidavit and annexures as filed at court.
• Notice of set down; and
• Court order granted.

For update to Status Code G1: Application for debt review rejected by Magistrate – not over indebted [Form 17.W(d)]

• Notice of motion with clear court details, case number and date of hearing.
• Notice of motion in rescission application indication the court, case number, court stamp and date of hearing.
• Founding affidavit and annexures as filed at court.
• Notice of set down; and
• Court order granted.

For update to Status Code I: Consumer deceased

• Copy of consumer ID document.
• Death Certificate; and
• Proof of notification to all credit providers

For update to Status Code J: Consumer sequestrated.

• Sequestration court order clearly indicating the court, case number and court stamp; or
• Rehabilitation order; or
• Letter from attorney confirming rehabilitation due to the passage of time.

Kindly be advised that this mailbox is designated solely for DHS status codes update requests. Emails not pertaining to status codes updates will not receive a response.

The Relevant Timelines for Each Debt Review Removal Scenario.

Updating an assessment that has led to rejection – Status Code B

• The Credit Bureaus will remove the debt counselling flag on the consumer’s credit profile within a period of three (3) working days from the date of receipt of the automatic update from DHS. (Note: The date of receipt is the response date of the NCR to the debt counsellor’s request)

Updating a Clearance Certificate when all restructured debts have been settled except the mortgage agreement – Code Status F1

• The NCR will within seven (7) working days from submission of all required information and documentation, verify the authenticity of such information and documentation, update the DHS system with the applicable status code and respond to the debt counsellor accordingly.

Updating a Clearance Certificate when all restructured debts have been settled – Status Code F2

• The NCR will within seven (7) working days from submission of all required information and documentation, verify the authenticity of such information and documentation, update the DHS system with the applicable status code and respond to the debt counsellor accordingly.

Updating when the order is Rescinded – Status Code G

• The Credit Bureaus will remove the debt counselling flag on the consumer’s credit profile within a period of three (3) working days from the date of receipt of the automatic update from DHS. (Note: The date of receipt is the response date of the NCR to the debt counsellor’s request)

Updating when the application for debt review is rejected by Magistrate – not over indebted. Status Code G1

• The NCR will within seven (7) working days from submission of all required information and documentation, verify the authenticity of such information and documentation, update the DHS system with the applicable status code and respond to the debt counsellor accordingly.

Updating when the consumer is deceased – Status Code I

• The Credit Bureaus will remove the debt counselling flag on the consumer’s credit profile within a period of three (3) working days from the date of receipt of the automatic update from DHS. (Note: The date of receipt is the response date of the NCR to the debt counsellor’s request)

Updating when the consumer is sequestrated – Status Code J

• The NCR will within seven (7) working days from submission of all required information and documentation, verify the authenticity of such information and documentation, update the DHS system with the applicable status code and respond to the debt counsellor accordingly.

Note:

In cases where the submitted documentation is insufficient or the authenticity verification has failed (for example, due to false or fraudulent paid-up letters, court documents, etc.), the registrant will be notified accordingly.

The request will be closed by the NCR. Should the debt counsellor decide to submit a new request for the same update, the process must begin anew, and partial submissions will not be accepted.

Any debt counsellor found to have submitted false or fraudulent information or documentation to the NCR will be investigated in terms of Section 136(2) of the NCA.

What are the NCR DHS Codes and what do they mean?

The NCR DHS Codes are a set of status codes used by the National Credit Regulator’s Debt Help System in South Africa to track the progress of a consumer’s debt review process. These codes indicate various stages such as application for debt counselling, rejection of the application, over-indebtedness assessment, commencement and completion of formal debt restructuring, and voluntary withdrawal from the debt relief process.

The below will give more insights on the DHS status codes.

• Status Code : A – Applied for debt counselling and being assessed
• Status Code : A1 – Voluntary withdrawal by consumer prior to being declared over-indebted
• Status Code : B – Assessment has resulted in a rejection
• Status Code : C – Assessment has resulted in a decision that the consumer is over-indebted
• Status Code : D3 – Formal debt re-structuring through the courts has commenced
• Status Code : D4 – Formal debt re-structuring is completed, and a court order granted
• Status Code : F – DC declares that the consumer is no longer over – indebted
• Status Code : F1 – All restructure have been settled except mortgage agreement
• Status Code : F2 – All restructure debts have been settled
• Status Code : G – Magistrate rescinded the debt review court order/consumer opposed debt review application and has been declared not over-indebted. (Option C on Form 17.W)
• Status Code : G1 – Application for debt review rejected by Magistrate – not over indebted. (Option D on Form 17.W)
• Status Code : I – Consumer deceased

Conclusion

This NCR debt review removal article provided a comprehensive guide to the NCR Debt Review Removal process. By familiarizing yourself with the necessary documents, understanding the submission procedures, and keeping track of the timelines pertinent to your case, you can tackle this process confidently. Keep in mind, seeking advice from a registered Debt Counsellor can offer essential support along the way.