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Debt Review Status at Banks

Questions & AnswersCategory: Debt ReviewDebt Review Status at Banks
Maneveld asked 1 year ago

My husband and I registered for debt review on the advice of a debt counsellor in 2008 or 2009 (cant remember exactly as it was so long ago).

After 1 year of paying money via the National Payment Distribution Fund, we actually found that we owed more money to our debtors as the payments we made had no effect due to high-interest rates.

Our house and both cars were still repossessed as we found out that the banks that we had the finance with for these, did not actually accept our debt review status and continued to insist that full payments and arrears be made to them.

Needless to say, we told the debt counsellor to take a hike and started making our own arrangements and paying off our debt ourselves.

It took us a few years, but we finally cleared everything. Our ITC records reflect that all is clear, yet when trying to apply for a home loan, we were advised that they are still picking up our debt review status when doing the credit checks.

I don’t understand why, as when we log onto ITC to obtain our own credit reports, there is no mention anywhere on these reports of debt review. In addition, I managed to buy a car last year through financing, so how is it that the debt review status wasn’t picked up for that?

How can I resolve this as my home loan application hangs in the balance?

1 Answers
Matthys Potgieter Staff answered 1 year ago

Hi there,

Thank you for getting in touch and well done on getting rid of your debt. A long road, but one worth travelling.

If your credit report reflects nothing with regards to a debt review, it could be that the bank still has an internal reference or flag that pops up.

To deal with this you can ask for a clearance certificate from your debt counsellor (or any other debt counsellor for that matter). Attach proof of settlement of the accounts that were subject to the debt review. If you show this clearance certificate (also known as a Form 19) to the bank, they might adjust their records.

Further more, you can ask them where they are picking up the record. There are 5 big credit bureaus, and it could be that only one of them is actually carrying a flagged record. You can dispute the incorrect records directly with the credit bureau.

Kind regards