Yes, removal from debt review requires a Section 71 clearance certificate (Form 19) once you qualify.
If you’re stuck with the over-indebted flag and want your record clean, you need a clear route, the right paperwork, and the right people to action it. This guide lays out lawful routes, timing, costs, and pitfalls so you can move from stuck to sorted without wasting cash on shortcuts that don’t work.
Ways To Remove A Debt Review Flag Safely
There are a few lawful paths to clear the status. Pick the one that matches your situation, then follow the checklist under each route.
| Route | What It Means | When It Applies |
|---|---|---|
| Section 71 Clearance Certificate (Form 19) | Your counsellor issues a certificate and files it with credit bureaus and the national register. | Short-term debts in the plan are paid in full; your bond or another long-term credit line is current with no arrears. |
| Tribunal Review | You ask the National Consumer Tribunal to order the counsellor to issue the certificate. | You meet the Section 71 test, but the counsellor refuses or stalls. |
| Rescission/Upliftment By Court | A magistrate rescinds or uplifts the original rearrangement order. | Narrow cases: order granted by default, patent errors in the order, or a material change backed by law and attorney advice. |
How Section 71 Clearance Works
Section 71 of the National Credit Act sets the rule for clearing the status once all short-term debts in the plan are settled and any long-term account in the plan (such as a bond) is up to date. In plain terms: settle the short-term stack, bring the long-term line current, and you qualify for a Form 19 clearance certificate. Your counsellor must send the certificate to all credit bureaus and the national register within seven days, which triggers the removal of the flag and linked default data.
Checklist For The Certificate
- All accounts in the plan, other than the bond or another listed long-term agreement, show a zero balance.
- The bond (or other long-term item in the plan) is current with no arrears.
- Proof of settlement for every paid-up account is on hand.
- Your counsellor issues Form 19 and submits it to all bureaus and the national register.
- You receive a copy of the certificate and store it safely for later disputes.
Timing And What To Expect
Once the certificate is issued, bureaus clear the flag and linked markers after receiving the file. Many cases wrap within a few weeks. Clearing at every lender’s internal system can lag; keep proof handy and follow up if a screen still shows the old note.
Eligibility Test: Do You Qualify Right Now?
Run through this quick test. If you answer “yes” to each line, you’re ready to request the certificate.
- Every short-term credit agreement in the plan is fully paid.
- The home loan or other listed long-term account is current with no arrears.
- You have statements or paid-up letters to confirm the balances.
- No dispute remains on interest, fees, or misallocated payments.
If you fall short on any point, fix that item first. A tiny leftover balance or one month’s arrears will stall the process.
Costs, Roles, And Who Does What
Fees vary by firm and by the work required. Ask for a written quote before anyone starts. Here’s how duties split so you know who to press when something stalls.
Debt Counsellor
Confirms balances, checks arrears, issues Form 19 once you qualify, and files it with bureaus and the national register. Also sends updates to lenders so internal flags can be cleared. If the counsellor refuses to issue a certificate while you meet the Section 71 test, you can seek a Tribunal review of that refusal.
Payment Distribution Agency (PDA)
Issues payment histories and paid-up confirmations where needed. If any transfer bounced or sat in suspense, the PDA helps fix it so balances can mark as settled.
Credit Bureaus And Lenders
Bureaus expunge the status once they get the certificate. Lenders mirror that in their systems after they receive the update. If one lender lags, send the certificate and ask for the internal code to be cleared.
Practical Walkthrough: From Ready To Cleared
Use this path when you’ve met the test and need a clean set of steps.
- Pull a recent credit report and list all accounts that sat in the plan.
- Ask the PDA and each lender for final balances and settlement figures.
- Pay off the last short-term balances and get paid-up letters for each account.
- Bring the bond current if it was part of the plan; ask for a statement that shows no arrears.
- Send the proof pack to your counsellor and ask for Form 19 to be issued.
- When you receive the certificate, forward it to bureaus and any lender that still shows a flag. Your counsellor should do this too, but two lanes speed it up.
- Check your report again in a few weeks. If the flag still shows, lodge a dispute and attach the certificate.
Legal Routes Beyond The Certificate
Most people clear the status with Form 19. In a narrow set of cases you may need a lawyer.
Ask The Tribunal To Intervene
If you tick the Section 71 boxes and the counsellor won’t issue the certificate, you can ask the National Consumer Tribunal to review the refusal. If the Tribunal agrees you qualify, it can order the counsellor to issue the certificate. This keeps costs lean and uses the process built into the Act.
Rescission Or Upliftment By Court
Courts can set aside a rearrangement order in limited cases, such as when the order was granted by default, contains patent errors, or you can show a changed position supported by law. This path needs attorney input and may cost more. Use it where the law allows and where a direct certificate route is blocked.
Where People Get Stuck
Most delays trace back to missing proof, small arrears on the bond, or admin oversights. Use this section to clear snags fast.
Frequent Snags And Fixes
- One account shows a small balance: Request a recon from the lender and your PDA. A stray fee or interest line often sits there. Pay it and get a paid-up letter.
- Bond shows one month behind: Make a catch-up payment and send the proof. The certificate can only flow once the long-term account is current.
- Bureau still shows the flag: Send the bureau the certificate copy and ask for a manual refresh. Include your case number and ID.
- A lender’s screen still shows the old status: Share the certificate and ask for the internal code to be cleared. Keep a log of dates and names.
- Your counsellor has closed shop: Contact the regulator to help assign your file to an active counsellor.
Scams To Avoid
Shady operators sell “quick removals” with no legal basis. Red flags include promises to scrub the flag while debts remain unpaid, requests for upfront cash with no trust account, and claims that they can “hack the bureaus.” If the process skips Form 19, a Tribunal step, or a valid court order backed by the Act, walk away.
Document Checklist And Where To Get It
Keep this list handy when you start the clearance request. Ticking every line speeds up bureau updates and lender clean-up.
| Document | Where To Get It | Why It Matters |
|---|---|---|
| Paid-up letters | Each credit provider or PDA | Proves every short-term account is settled. |
| Bond statement (current) | Home loan lender | Shows no arrears on the long-term line in the plan. |
| Debt rearrangement order | Your counsellor or attorney | Confirms the original case details and scope. |
| Form 19 (certificate) | Debt counsellor | Triggers bureau and register updates. |
| ID copy | You | Matches records at bureaus and lenders. |
Switching Counsellors Or Finding Help
If your original counsellor is uncontactable, reach out to the National Credit Regulator for guidance on moving your file. Keep your case number, ID, paid-up letters, and any court order ready so a new counsellor can step in with minimal delay.
Sample Email Templates You Can Use
Request To Counsellor
Subject: Request for Form 19 Clearance Certificate
Body: “I have settled all short-term debts in my plan and my long-term account is current. Please issue Form 19 and file it with all credit bureaus and the national register within seven days. I attach paid-up letters and my latest bond statement.”
Follow-Up To A Lender Showing The Old Flag
Subject: Update Required: Debt Review Flag Still Showing
Body: “Please remove the internal code that still shows debt counselling on my profile. Attached is my Form 19 clearance certificate and case number. Kindly confirm once your system reflects the update.”
How Long It Takes
The legal part is quick once you qualify: your counsellor has seven days to file the certificate. Bureau and lender updates can take a few weeks. Keep copies of every mail and ask for reference numbers so follow-ups are easy.
When A Lawyer Makes Sense
Get attorney input if a lender disputes a paid-up balance, a court order needs variation or rescission, or your counsellor is unresponsive. Ask for a fixed-fee quote for the first step and a clear view of timelines and risks.
Life After The Flag Falls Away
Once the record is clean, rebuild sensibly. Pay every account on time, keep card limits modest, and avoid opening many lines at once. A small store card paid in full each month helps re-establish a track record. Keep total debt low relative to take-home pay, and spread applications across the year instead of bunching them.
Sources And Legal Anchors You Can Rely On
The rule that drives the certificate lives in Section 71 of the National Credit Act. The National Credit Regulator publishes the official template on its site; see the Form 19 clearance certificate under its list of forms. Government guides on debt counselling explain that bureaus must expunge the flag once they receive the certificate.