Clearance Certificates

In terms of section 71(2)(b)(i) of the NCA, a debt counsellor must issue a Clearance Certificate (Form 19) if the consumer has fully satisfied all the debt obligations under every credit agreement that was subject to the debt re-arrangement order or agreement.



The Debt Counselling Process normally aims to satisfy most unsecured debts within a period of 60 months, with the Car/s and the Home Loan/s remaining. The consumer may then apply for the court order to be rescinded or as an alternative for a variation of the court order.



It does not seem that the intention of the legislator was to allow a consumer to withdraw from debt review, but it happens in practise. After an order has been made by the court, it is not possible for the consumer to withdraw, and one alternative would be to apply to rescind the order.



Implications of the Credit Amendment Act 19, 2014 must be considered as mentioned in paragraph “Amendments to the NCA” on page 34/35 – needs cross referencing