How do I remove debt review from my credit report if all my debt has prescribed. Would I still need to pay-off prescribed debt, before my debt review can be removed? Prescribed no longer show on my credit reports.
Thank you for your question.
Your debt review will be listed on your credit profile until a Form 19 (Clearance Certificate) is issued. This can only happen when;
1. you have brought arrears up to date and are able to pay original instalments, or
2. if your debt has been settled.
In theory, you should be able to apply for credit again within a week of receiving your Clearance Certificate. In our experience, though, the latter is not true. Credit Bureaus take longer than that to get your record cleared. We suggest waiting at least 3 months before applying for new credit. Pull your credit report about one month after you have been issued with the Clearance Certificate. Check your credit score and payment history. If there are any discrepancies, contact your debt counsellor to help sort it out.
Regarding prescribed debt:
Debt has only prescribed if there has been no attempt by the credit provider to collect it or if no summons has been issued for the debt during the last 3 years. Also, if there has been no acknowledgement of debt during the last 3 years. If you have made any form of payment in the last 3 years it constitutes an acknowledgement of debt.
Prescription of debt is a defence; thus, when the credit provider attempts to collect you can claim prescription as a defence. If the debt has indeed prescribed we would advise that you get an attorney to write a letter on your behalf to the respective credit providers notifying them of the problems that are being caused by the prescribed debt on your credit record and then claiming that it has prescribed.
Have a great day.