What is a Debt Review Flag?

If you are under debt review, your credit report will show a temporary listing called a debt review flag.

This “flag” (or listing) simply shows that you are in the process of repaying your debts through a structured plan. It also signals to credit providers that you have already taken steps to deal with your debt, often with reduced interest rates and better repayment terms to help you become debt free.

This flag is only added after a National Credit Regulator registered Debt Counsellor has assessed your finances and confirmed that you qualify for debt review.

Once you officially sign up, your Debt Counsellor notifies your credit providers, the NCR, and the credit bureaus. They then update your credit report to show that you are under debt review. Importantly, this is not permanent. It is a temporary listing that stays in place while you work through your debt repayment plan.

‘It is a temporary listing that stays in place while you work through your debt repayment plan’

The debt review flag actually plays an important protective role. When people feel financial pressure, it is common to try borrow more money to cope. Unfortunately, this often makes things worse.

The flag prevents credit providers from giving you new credit while you are already working to repay existing debt. This helps remove temptation and keeps you focused on becoming debt free. It also protects credit providers. If they ignore the flag and still give you credit, they can face serious penalties for reckless lending, including fines of up to R1 million.

‘If they ignore the flag and still give you credit, they can face serious penalties for reckless lending, including fines of up to R1 million’

Once you complete the debt review process, the flag is removed.

After all your debts are settled (excluding a home loan), your Debt Counsellor issues a clearance certificate. They then inform your credit providers, the NCR, and the credit bureaus that your debts have been repaid. Supporting documents are provided to confirm this. Within a few days, the debt review flag is removed from your credit report, and your profile is updated.

Consumers should be careful of scams related to the debt review flag. Some scammers promise to remove the flag for a fee or claim they have special connections to do so. These offers are not legitimate. The only official way to remove the flag is to pay off your debts and then be assisted by a proper Debt Counsellor. Falling for these scams can result in lost money, missed payments, and even legal action from credit providers.

A debt review flag on your credit report is not something to fear. It is there to protect you, assist you during your repayment journey, and help you stay on track.

Stick to your plan, and once you reach the finish line, the flag will be removed automatically.