Understanding Your Debt Review Status: A Guide for South African Consumers and New Debt Counsellors

Every day, thousands of South Africans are declined for credit without a clear explanation. In many cases, the reason lies in a misunderstood or unknown debt review status. This article breaks down the different debt review codes that appear on your credit report, what they mean, and what steps you can take depending on your status. Whether you’re a consumer trying to understand why you were declined, or a new debt counsellor navigating the National Debt Help System (DHS), this guide is designed to help you make sense of the terminology.

What Is a Debt Review Status?

When you apply for debt counselling in South Africa, your status is tracked in the National Debt Help System (DHS) and shared with credit bureaus. This information becomes part of your credit profile. Depending on where you are in the debt counselling process, a code (e.g. A, D4, F1) will appear on your report. Understanding these codes can help you know whether you’re allowed to take on new debt, whether you’re still under debt review, or whether you’ve completed the process.

Why Does It Matter?

Many consumers don’t realise they are still flagged under debt review, even years after they stopped paying their debt counsellor. Others mistakenly believe that voluntary withdrawal removes the flag from their credit profile. In truth, only specific statuses (such as F1 or G1) indicate that the debt review process has been legally resolved. Misunderstanding your status can lead to unnecessary credit declines, frustration, and confusion.

Overview of Key Debt Review Status Codes:

Common Misunderstandings:

“I stopped paying my debt review years ago, so I’m not under it anymore.”
Incorrect. Stopping payment doesn’t remove the debt review flag. It simply removes the legal protection and benefits, leaving you with no structured plan and still flagged.

“I withdrew voluntarily, so my name is clear now.”
No. Once you formally apply for debt review and signed a Form 16 your you will be flagged, Only if you are declared not over-indebted (status A1) will it be removed. Or until a clearance certificate (F1 or F2) is issued, OR a court declares you not over-indebted (G/G1). However Consumers when you do enquire into Debt Review, specifically state to the Debt Counsellor to do a “pre assessment” first, refrain from signing a Form 16 until they can provide you with a “pre-assessment” indicating that the possibility is high for you to be over indebted and debt review would be a beneficial option to you. Only then sign your Form 16.

“Debt review ruins your credit forever.”
False. Once you complete the process and receive a clearance certificate, you can rebuild your credit score over time. Many people return to full financial health within 12–24 months.

“Why do I need to prove it?”

Whether it is the quest for paid letters confirming debts are settled, documents that show the NCR you do not qualify for debt review, or a massive court undertaking, there will be admin involved. Debt Counsellors need to prove every fact before any of these admin processes can even begin. And all admin takes time to resolve.

“I paid all my debts yesterday and today I was declined for a loan- why is it taking so long?”

Every admin process is extensive and has to travel to many places before your Debt Counsellor can clear you, and the creditors and bureaus get on the same page. It is unfortunately not an instant button that unflags you immediately. However, as an Industry it is our goal that all stakeholders expedite this process so a Consumer can be rehabilitated as soon as possible.

How to Check Your Status

You can access your credit report for free through:

• https://www.mycreditcheck.co.za/
• For a list of Credit Bureaus, check out this link: https://sacrra.org.za/ 

Look for the “Debt Review Status” section or account flags. Match the code to the descriptions (“DHS Codes”) above to understand where you stand.

If you’re unsure or see conflicting information, speak to a registered debt counsellor who can confirm your status via the DHS or DCASA can also check for you.

Advice for New Debt Counsellors

For those new to the industry, or even those who struggle to keep up with all the updated DHS codes: Understanding these codes is essential to managing client expectations and compliance. Only (A, C, D3, D4,) are accessible to debt counsellors via the DHS system, and only with correct documentation can the clearance or removal statuses be completed.( F1 and F2, G1 / G2 as well as status B, I and J).

When assisting clients in status resolution, ensure they meet the legal requirements for clearance or court removal. Educate your clients that status alone doesn’t disappear with time-it must be resolved correctly. Removal and Clearance statuses with documents must be submitted to all creditors that formed part of the debt review agreement, and then submitted to credit bureaus / the NCR in case of removal and alternative status updates.

If you’re working with consumers who have been declined for loans, always start by confirming their credit status before proposing solutions. Many clients are shocked to learn they’re still flagged or that a previous application was rejected by court (status G/G1) and is still visible at creditors / credit bureaus. Reach out to DCASA if you are unclear about the process.

Final Thought

Debt review is not a life sentence. It’s a legal tool to help South Africans recover and rebuild. But that recovery begins with understanding your status. Whether you’re a consumer or a new DC, use this guide to clarify the path forward and help more people regain financial control -legally and confidently.

This article was written as a public education initiative by Nadia de Weerdt a registered South African Debt Counsellor (NCRDC3360)- Sandton Debt Counselling, committed to promoting financial literacy and lawful debt resolution. https://www.sandtondc.co.za/