After publishing our recent article on the growing issue of illegal debt review removals and the risks consumers face when dealing with unregistered operators (https://www.dcasa.co.za/debtreviewremovaltrap/), many South Africans reached out asking a crucial follow-up question:

“When can I actually be cleared from debt review — legally, safely, and without being scammed?”

This article explains the three lawful exit routes from debt review, how each one works, what evidence you need, common pitfalls, and how to protect yourself from entities offering shortcuts that may cost you thousands of rands or result in fraudulent court orders.

Debt review remains an effective protection tool for over-indebted consumers — but understanding your rights, your status codes, and the correct legal processes is essential. Below, we break it down clearly.

 

The Only Three Legal Ways to Exit Debt Review

Under the National Credit Act (NCA), there are exactly three lawful pathways for a consumer to be removed from debt review. Each option applies to different scenarios depending on whether:

1. you have merely applied for debt review,
2. you have been declared over-indebted,
3. a court order has already been granted, or

• you were placed under debt review fraudulently follow this article – scammed.

Many consumers do not realise that your credit bureau status code determines what route is available to you. For this reason, always request a recent credit report before taking action.

 

Exit Route 1: You Applied for Debt Review but You Are Not Over-Indebted (Form 17.2(a))

This is the simplest and quickest exit route.

It applies when your credit record shows Status Code A, meaning you have applied for debt review but have not yet been declared over-indebted. You may fall into this category if:

• your financial situation improved,
• or, most commonly lately,
• you were fraudulently placed under debt review without your knowledge.

If your financial documents show that you are not over-indebted, the debt counsellor must issue a Form 17.2(a), confirming that you do not qualify for debt review. This automatically exits you from the process and updates your record to Status Code B.

What should you look out for?

1. You have applied for debt review, or your credit file shows Status A.
2. You can prove that you are not over-indebted (bank statements, payslips, affordability calculations).
3. You request your debt counsellor to issue a Form 17.2(a) and to update your status code accordingly.
4. If you did not apply for debt review but appear as Status A on the credit bureau, you may be a victim of debt review fraud. Use this guide to lodge a complaint with the NCR:
   https://www.dcasa.co.za/scammed-under-debt-review/
5. The NCR has the authority to investigate and ensure your removal.
6. If your counsellor refuses to assist (despite your qualifying circumstances), you are allowed to transfer to another debt counsellor willing to review your documents and issue a Form 17.2(a) if appropriate.

For ethical, registered help, visit:
https://www.dcasa.co.za/debt-counsellor-near-me/

 

Exit Route 2: You Were Declared Over-Indebted (Status Code C), but No Court Order Has Been Granted Yet

This is the area where most confusion happens — and where illegal operators take advantage.

If your credit bureau shows Status C, you have already been declared over-indebted. However, you can still exit debt review legally only if no court order has yet been issued.

This exit route generally applies when:

• your financial circumstances have improved,
• you were initially miscalculated,
• or you wish to withdraw from debt review before the court finalises your matter, and you have sufficient grounds to do so.

The Legal Process

1. If you were scammed or misled, begin by reporting the matter through:
   https://www.dcasa.co.za/scammed-under-debt-review/
2. If your finances have changed and you believe you are not over-indebted anymore, your debt counsellor can approach the court to reject the debt review proposal.
3. This is done in terms of Section 88(1)(b) of the National Credit Act.
4. Specialist debt review attorneys can assist with preparing and submitting this application:
   https://www.dcasa.co.za/serviceprovider-search/
5. If the court is satisfied that you are not over-indebted, it will reject the debt review application and instruct the debt counsellor to update your status to G or G1.
6. You are then formally exited from debt review.
7. You must be able to prove your affordability clearly to the court.

This process must be followed carefully, and evidence must be strong. A DCASA-accredited counsellor can help you evaluate whether you meet the legal requirements.

Find support here:
https://www.dcasa.co.za/debt-counsellor-near-me/

Exit Route 3: Section 71 Clearance Certificate (Form 19)

This is the most well-known exit route, but also the one most abused by illegal removal companies.

A Form 19 Clearance Certificate may only be issued after a debt review court order exists, and only under the conditions defined in Section 71 of the NCA.

What is the conditions and when can you receive a clearance certificate?

1. You have settled all debts listed in the debt review court order.
2. If you have settled all debts except your home loan, the debt counsellor may still issue a clearance certificate updating your status to F1.
3. If all debts, including the home loan, are settled, your status is updated to F2.

Many illegal operators falsely claim they can issue clearance certificates without settlement. This is unlawful, and consumers must avoid such services.

 

Important Exceptions and Misleading Practices

1. Court orders obtained in error or through fraud

If the court order was issued incorrectly, fraudulently, or through procedural defects, it can be taken on review. Only an attorney can handle this process properly. We have a list of attorneys that can assist with this process: https://www.dcasa.co.za/serviceprovider-search/

2. Fraudulent “removal” companies

Be especially careful of companies that promise:

• instant clearance
• instant court orders
• debt review removal for a fixed fee
• “fast exits” even with a court order in place

Many consumers unknowingly receive fraudulent court orders, and the consequences can be severe, including criminal charges.

3. Consolidation loan loopholes

A concerning trend has emerged where certain creditors issue consolidation loans to consumers still under debt review. They settle all accounts, produce a Form 19 to exit the consumer, and only then register the consolidation loan.

This behaviour raises serious questions about reckless lending and is under industry scrutiny.

4. Situations where debt review ends automatically

Debt review generally ends if:

• the consumer passes away, or
• the consumer applies for sequestration (formal insolvency).

Protect Yourself: Know Your Rights and Avoid the Pitfalls

Debt review is designed to protect consumers, not trap them. It requires patience and discipline and is not meant to be rushed. However, if your circumstances have genuinely changed, and especially if no court order exists yet, you may have safe, lawful options to exit the process.

Avoid following advice from unqualified online influencers or TikTok personalities promoting shortcuts. Illegal removals often result in fraudulent court orders, damaged credit profiles, and significant financial loss.

For help you can trust, connect with a DCASA-registered debt counsellor:
https://www.dcasa.co.za/debt-counsellor-near-me/

Article by Vanessa Johst
Operations Manager, DCASA
28 November 2025