Easy Guide to Debt Review Status Codes

Have you ever heard of debt review status codes? These are codes inputted into the debt help system that reflects where you are in the debt review process. They help creditors, bureaus, and consumers understand where they are in the debt review process and whether they should be granted credit.

As of March 2022, the codes are A, A1, B, C, D3, D4, F, F1, F2, and G.

• A– You’ve applied for debt review and are being assessed
• A1– You exited debt review before being declared over-indebted
• B– You’ve been assessed as not over-indebted
• C– You’ve been assessed as over-indebted
• D3– Formal restructuring of your debt has started
• D4– Formal debt restructuring of debt is completed and you’ve been granted a court order
• F1– All your restructured debts have been paid except your bond
• F2– All your restructured debts have been paid, including your bond
• G– The Magistrate’s court took back your debt review order or you fought the debt review application and were declared not over-indebted
• G1– The Magistrate’s court declared you not over-indebted
• I– You’ve been declared deceased
• J– You’ve been sequestered

Let’s discuss what these codes mean, how they might affect your credit, and how you can check which code is on your credit profile.

Debt Review Status Codes Explained

To properly understand debt review status codes, we have to place them in the context of the debt review process.

Application

When you first apply for debt review, you’ll have to complete Form 16. You list your assets, income, expenses, and debt here. Your debt counsellor uses this information to perform an affordability assessment. As soon as you hand in your Form 16, a profile for you is created on the debt help system, and code A is put on your profile.

Assessment

After an assessment is done, your debt counsellor will proclaim you are either over-indebted or not over-indebted. If you’re not over-indebted, they’ll complete a Form 17.2. If you are over-indebted, they’ll fill in a Form 17.2. If you exit debt review before this happens, a code A1 is entered into your profile.

If your debt counsellor hands in Form 17.2, code B is placed on your profile. Conversely, a declaration of over-indebtedness makes for a code C to be placed on your profile. Once you’ve been declared over-indebted, the debt rearrangement process starts. Your debt counsellor will ask the NCR to change your status code to D3.

Magistrate’s Ruling

Your debt counsellor will then approach the Magistrate’s court and submit your case: why they feel you are over-indebted and a list of the arrangements that have been made. A code D4 will be placed on your profile. If the Magistrate’s court feels you are not over-indebted, a code G1 is placed on your profile. While you’re paying off your debts, the Magistrate’s court has the right to rescind their court order, a code G is placed on your profile. The same applies should you become able to pay your debt as per your original credit agreement and are declared not over-indebted.

Debts Repaid

When you’ve paid off all outstanding payments except your bond, a code F1 is placed on your profile. If all your debts including your bond have been repaid, a code F2 is placed on your profile. You may request a clearance certificate in both of these cases.

Lastly, in the event of your death, a code I is placed on your profile. If you’ve declared insolvency (been sequestered), a code J is entered.

To check your debt review status code, we recommend getting a free credit check. The NCA mandates that each bureau provide you with one free credit report each year, so you’ll be able to check your status at least quarterly.

If you would like help formally restructuring your debts to gain lower debt repayments and interest, legal protection, budgeting help, the ability to retain your assets, or a reckless lending assessment, contact Debtco Group. We would love to help you on your way to financial freedom!

 

Debt review status codes explained (quick reference)

Your debt review status code tells credit providers and the credit bureaus exactly where you are in the debt review process. Here is what the main ones mean in plain language:

• Code 0 / no code, you are not under debt review.
• Under debt review, you have applied and the process is active. Your accounts are protected while you keep to the agreed plan, and you cannot take on new credit.
• Debt review withdrawn / removed, you exited debt review before completing it (see cancelling debt review and the risks).
• Cleared / clearance certificate issued, you have completed debt review and settled the accounts under it. The debt review flag is then removed and you can rebuild your credit.

The exact wording varies slightly between bureaus, but the meaning is the same: the code reflects whether you are entering, in, exiting, or finished with debt review.

Why your status code matters

While the “under debt review” status shows, you are legally protected from action on the accounts included, but you also cannot open new credit. That is temporary. Once you finish and receive your clearance certificate, the flag comes off, usually within about three weeks, and you are free to apply for credit again as a rehabilitated consumer.

How to check and fix your status

If your status code looks wrong, for example it still shows “under debt review” after you have a clearance certificate, it can and should be corrected with the bureaus. If you are unsure what your code means or how to fix it, a registered debt counsellor can check it for you.

Frequently asked questions

How long does the debt review flag stay on my record?
Until you complete debt review and receive your clearance certificate, after which it is removed, typically within a few weeks.

Can I be under debt review without knowing?
It is rare, but if you think your status is incorrect, have it checked. Working with a registered debt counsellor keeps everything transparent.

Need help understanding your debt review status?

Debtco Group (NCRDC 3277) has guided South Africans through debt review since 2010. If you are unsure about your status or want to start the process, call a registered debt counsellor on 021 007 1422 or request your free, no-obligation assessment. You can also read how debt review works.