Of the last 524 South Africans who checked their status against the National Credit Regulator's debt review register through Debt Solutions 4U, 44.1% turned out to be actively listed under debt review. Most did not know before they checked.
The finding emerged while the NCR-registered practice was building its monthly South African Financial Pressure Index.
A debt review listing blocks new credit entirely under section 88 of the National Credit Act, which means consumers typically discover it when a credit application is declined, often at a dealership or while applying for a rental.
The practice identified several common causes: applications started years earlier and abandoned when payments stopped; completed debt reviews where a clearance certificate was never issued; and consumers listed through a spouse's application in a marriage in community of property.
“People assume that if they stopped paying, the debt review stopped too. It does not work that way. Once you have been accepted into the process, only a clearance certificate or a court order ends it. We see people who have been carrying a listing for years without knowing.”
— Rowan Breeds, Lead Debt Counsellor, Debt Solutions 4U (NCRDC2423)
The practice also found that credit bureau records are not a reliable source for this question. Comparing the bureau debt review indicator against the NCR register for the same consumers, the two sources disagreed on 152 of 336 matched cases.
Consumers can check their status free of charge with any NCR-registered debt counsellor, or by phoning the National Credit Regulator on 0860 627 627.
