Are you declined credit due to (unlawful) debt review flag?

Millions of South Africans are denied credit due to an unfairly or unlawfully placed Debt Review Flag on their records. 

Debt Counselling is a voluntary and consensual process which results in the Tribunal or a Magistrate Court re-arranging the consumer’s debt. Where there is no court order in place, it means the debt review process was not completed or was abandoned, therefore the flag is unlawful and invalid.

 In terms of Section 86 of the NCA, when you apply for debt counselling (signed Form16 application),  a debt review flag is placed on your credit record  to alert lenders of a pending debt review application as a caution to not extend further credit to a consumer who might be over-indebted. However, if the dept reviw application is unsuccessful, the flag should be removed. 

Unfortunately, there are thousands of cases where the debt counsellors does not remove the debt review flag when the application is unsuccessful or when the consumer cancels the process. There are also thousands of consumers who have been incorrectly, fraudulently and unlawfully flagged as under debt review, hindering their ability to get credit.

How to Get Credit Approval Despite the Debt Review Flag.

Introducing the Credit Approval Validation (CAV) Service

Major banks (Standard Bank, Absa, Fnb, Capitec, Nedbank) and other credit providers are aware of the plight of consumers who qualify for credit but are incorrectly or unlawfully listed as under debt review. These credit providers have sought a solution to address this problem as it impacts their profitability or bottom line.  As a resolve, they are referring their declined clients to AACS to investigate the validity of the debt review flag and issue a Credit Approval Validation. 

What is Credit Approval Validation? A sworn statement (affidavit) stipulating unequivocally that the debt review listing on your credit record is unlawful and under dispute  and confirms your eligibility for credit . This validation can be presented to credit providers to strengthen your credit application for approval.

The CAV is a must have document for any consumer who has been unlawfully listed or stuck under debt review. 

AACS supplies credible evidence in a form of an affidavit to the credit provider that stipulates that:
    (a). The debt review flag is invalid, fraudulent or unlawful. 
    (b). The matter is in the process of dipute with the NCR for invesitagation and resolution  
The credit providers use the affidavit to override the debt review flag and approve the credit application based on affordability and prescribed NCA credit guidelines.

What you should do: 
If you find yourself in a situation where you are declined credit due to a debt review flag on your credit records, and you know or suspect that it was unlawfully or fraudulently placed, you can register with the AACS to investigate  the circumstances under which you were placed under debt review and the validity of the flag. Where it is found that there were discrepancies, non-compliance or inconsistencies  in the process, or the debt review flag was unlawfully/fraudulently placed (without your consent or application), The AACS  in-house legal practitioner to draft a Credit Approval Validation(affidavit) on your behalf stipulating unequivocally that the debt review flag is unlawfu and under dispute. You can present this CAV (affidavit) to the credit provider for consideration and approval of your credit application. 

The Credit Approval Affidavit is based on the NCR dispute process in terms of Section 136 of the NCA.  With this affidavit, the credit provider shall consider your application (or override the debt review flag) and approve your credit on the basis of affordability and NCA credit guidlines.

Who Qualifies?
- Unlawfully placed debt review flag - You never applied for debt review (no signed Form 16)
- Incomplete process - No court order exists for your alleged debt review.
- Clearance Certificate - You completed debt review but cannot obtain a clearance certificate.
- Deregistered Debt Counsellor -  The debt counsellor who flagged you is no longer registered with the NCR.

How to Apply for Credit Approval Validation: 
1. Register below for assessment of your debt review circumstances
2. You will receive acknowledgement of your registration with a link to upload assessment and dispute documents
3. Upon receipt of the dispute documents, you will receive a link to activate your file for processing

Assessment, Investigation and Dispute Process: - Upon receipt of confirmation of file activation: 
1. We perform preliminary investigation to determine the circumstances under which you were placed under debt review. 
2. We access your credit report to establish debt review status and debt counsellor registration status.
3. We log the dispute for investigation and clearance with the NCR
4. Our in-house legal practitioner will draft an NCR compliant Credit Approval Validation (affidavit) on your behalf stipulating the established discrepancies and/or non-compliance issues and the dispute action. 
5. You can present the affidavit to any bank or credit provider when you apply for credit. 

PS: It is important to note that the approval of your credit application is the discretion of the credit provider based on affordability and the prescribed NCA credit guidelines. The AACS cannot intervene in any manner regarding the process and/or the outcome of the credit application. 

Do not wait to be declined! - Get Your Credit Approval Validation (affidavit) before you attempt to apply for credit. 

The Service Fees below are for a Limited-Time Service Introduction and expire on 31 July 2024, thereafter the normal dispute service fees  (shown in the last section), shall apply. 

 Please note that there is no payment for registration or assessment. You can register now and activate your file when you need the Credit Approval Validation. 

If you need more information, talk to one of our consultants here: ChatLive

Standard Dispute and Affidavit Fees - 01 August 2024