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Clearance Certificate Backlog Slowly Clearing Up?

After the National Credit Regulator (NCR) recently took on the manual updating of the NCR database and notifying credit bureaus, many consumers got caught in the backlog as they tried to leave the debt review process. This is a very exciting time for consumers who have been paying off debts for many years and they are sensitive to any delays. As a result, the NCR made the decision to allow Debt Counsellors to once again update this status on the NCR Debt Help system (database). 

‘credit bureaus report still handling hundreds of matters that are being sent through from the NCR’

The credit bureaus report still handling hundreds of matters that are being sent through from the NCR (those still caught in the backlog) but it is hoped this should taper off as the process reverts to the old “usual” way of doing things. 

Clearance Certificates & Turnaround Times

The National Credit Act (NCA) requires a Debt Counsellor to issue a clearance certificate for a consumer within 7 days of them paying off their debt. Credit bureaus are then required by the NCA to remove any listing. Though this is meant to also happen in a short time period it is not unknown for some bureaus to take up to 2 months to successfully remove the information. This can cause consumers some distress as they begin to look at new credit options. Some Debt Counsellors advise consumers to complete a complaint form with any credit bureau that does not speedily remove the listing (as these have to be actioned within 21 days) and that can indeed speed things along.

Consumers who have been in debt review and are considering reentering the credit market should look at slowly building up a better credit score before looking at bigger credit purchases. Taking on credit right after leaving debt review can leave one open to slightly higher credit interest rates. As their credit record is built up again lower rates for good credit users are more common. This can save credit users a lot over time.

Consumers who leave debt review can access their credit records to check if the listings has been removed and how their credit score is looking. Another option is to continue to save and spend without credit use.