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Paid Up Creditors and Withdrawal

Questions & AnswersCategory: Credit ProvidersPaid Up Creditors and Withdrawal
Anonymous asked 3 years ago


I am currently under debt review. We started in 2009 and now 6 years later reduced our creditors from 15 to 5. I am thinking of withdrawing from debt review after negotiating with my current creditors, but have a few questions.

  1. If I withdraw, will the paid-up creditors have any claim to interest or other fees? I have paid up letters, but these amounts were a lot less than what they would have been without debt review. Example I owed Company X R20 000 that included R15 000 and R5 000 interest. After debt review the amount to pay back became R17 000, which I paid in full. Can Company X now claim R3 000 or is this only for current creditors not paid up?
  2. There is a new document published by NCR in Feb 2015 that I, as a consumer, cannot just withdraw from debt review. I have to get a court order that overturns the original court order and only then can I withdraw. Is this a long process and is there a fee (I do not see my debt counsellor doing this free of charge as I am taking business away from him).
  3. What is the result on my credit if I withdraw? I understand that I will not be protected by debt review, but how does this impact on my credit score – I believe the “DEBT REVIEW” listing will disappear but would I be able to apply for credit after withdrawal (I have learnt my lesson and the idea is not too take out loans etc., but I do need to buy a new car soon and would need this financed).Thank you.
1 Answers
Matthys Potgieter Staff answered 3 years ago

Hi there, 

Thank you for your question. And well done to sticking with your debt review.

Cancelling your debt review is possible. A signed letter with an instruction for us to cancel is all it takes. Remember to consider the following: When a debt review is cancelled, the original credit agreement is revived and the creditors are free to proceed to enforce their rights in terms thereof. That is why we urge consumers not to cancel without making prior arrangements with creditors. We often assist them to do so. 

First reach a written agreement with the creditor about the capitalisation of all payments in arrears and the resumption of the original instalments prior to cancelling your review and losing your protection. What you must also keep in mind is that your debt review will be listed on your credit profile until a Form 19 is issued. This can only happen when your original installments according to original contractual terms can be maintained or if your debt is settled. 

So in short, yes, the accounts that are left will revert back to original contractual terms if you withdraw from debt review. There will also most definitely be a fee to get the debt review order rescinded. That differs from attorney to attorney. 

Kind Regards