The clearance certificate is the most important document you will receive during your debt review journey. It is the official proof that you have completed debt review, that all your included debts have been settled, and that you are free to participate in the credit market again. This guide explains everything you need to know about the clearance certificate — what it is, when you get it, and what happens after.
What Is a Clearance Certificate (Form 19)?
A clearance certificate — officially known as Form 19 — is a legal document issued by your registered debt counsellor. It formally confirms that:
- All debts included in your debt review have been paid in full, or
- All debts except your home loan have been paid in full (in which case the certificate is issued under Section 71(1)(b) of the National Credit Act)
- You are no longer under debt review and the debt review flag must be removed from your credit profile
The clearance certificate is prescribed by the National Credit Act (Act 34 of 2005) and is the only document that can officially end the debt review process and trigger the removal of the debt review flag from your credit record.
When Is the Clearance Certificate Issued?
The clearance certificate is issued when one of two conditions is met:
Every credit agreement included in the debt review — personal loans, credit cards, vehicle finance, store accounts, and home loan — has been settled in full. The debt counsellor issues the clearance certificate under Section 71(1)(a).
All credit agreements have been settled except the home loan (mortgage). The debt counsellor issues the clearance certificate under Section 71(1)(b). You continue paying your home loan independently at the restructured interest rate.
Once the condition is met and your debt counsellor has received paid-up letters from all relevant creditors, they are legally required to issue the clearance certificate within 7 business days.
Who Issues the Clearance Certificate?
Only a registered debt counsellor can issue a clearance certificate. Specifically, it must be issued by the debt counsellor who managed your debt review — the same counsellor who filed your Form 16 (application) and handled your case throughout the process.
Creditors, credit bureaus, the NCR, and Payment Distribution Agencies (PDAs) cannot issue a clearance certificate. It is solely the responsibility and authority of your registered debt counsellor.
What Does the Clearance Certificate Do to Your Credit Record?
Once the clearance certificate is issued, your debt counsellor sends it to all the credit bureaus (TransUnion, Experian, XDS, Compuscan) and the National Credit Regulator (NCR). This triggers several important changes to your credit profile:
- The debt review flag is removed from your credit profile at all four credit bureaus
- All accounts included in the debt review are updated to "paid up" status
- Your credit status returns to normal — you are no longer listed as being under debt review
- The NCR updates its records to reflect that your debt review has been completed
After these updates are processed, you are free to apply for new credit. Credit providers will no longer see the debt review flag when they run a credit check on you.
How Long Does It Take for the Flag to Be Removed?
Once the credit bureaus receive the clearance certificate from your debt counsellor, they are required to process the flag removal. This typically takes:
It can take up to 20 working days (approximately 30 calendar days) for all credit bureaus to fully process the flag removal and update your credit profile.
During this waiting period, your credit profile may still show the debt review flag. This is normal — the bureaus process removals in batches. If the flag has not been removed after 30 calendar days, contact your debt counsellor so they can follow up with the bureaus directly.
Paid-Up Letter vs Clearance Certificate
Many people confuse paid-up letters with the clearance certificate. They are related but serve different purposes:
| Feature | Paid-Up Letter | Clearance Certificate |
|---|---|---|
| Issued by | Individual creditor | Your registered debt counsellor |
| Confirms | One specific account is settled | All debts under review are settled |
| Removes debt review flag | No | Yes |
| Sent to credit bureaus | No (only updates that account) | Yes — all four bureaus + NCR |
| Allows new credit applications | No | Yes |
| Legal basis | Contractual confirmation | Section 71 of the National Credit Act |
| When you receive it | When each individual debt is paid off | After all paid-up letters are collected |
In short: you need paid-up letters first (one from each creditor as each account is settled), and then once all paid-up letters have been collected, your debt counsellor issues the clearance certificate. The clearance certificate is the document that ends the debt review process and removes the flag from your credit record.
What If Your Debt Counsellor Does Not Issue It?
Unfortunately, some consumers experience delays or difficulties getting their clearance certificate from their debt counsellor. This can happen if the debt counsellor has closed their practice, become deregistered, or is simply unresponsive. If you find yourself in this situation, you have several options:
You can submit a Form TI.71(3) to the National Consumer Tribunal (NCT). This form requests the Tribunal to issue a clearance certificate on your behalf when your debt counsellor has failed to do so. The Tribunal has the legal authority to issue the certificate in these circumstances.
Lodge a formal complaint with the National Credit Regulator (NCR) against your debt counsellor. The NCR regulates all registered debt counsellors and can investigate the matter, compel the counsellor to act, or take disciplinary action if necessary.
Through PDA (Payment Distribution Agency) data, another registered debt counsellor can take over your case and issue the clearance certificate on your behalf. The PDA holds records of all payments made, which can be used to confirm that debts have been settled.
If you are struggling to get your clearance certificate, do not give up. You have paid your debts and you are entitled to this document. Contact DS4U and we can help guide you through the process of obtaining your clearance certificate, even if another debt counsellor handled your original debt review.
Can You Apply for Credit Immediately After?
Technically, once the clearance certificate is issued and the debt review flag is removed, you are legally free to apply for credit. Some credit providers may process applications within 1 week of the flag being removed.
However, practically speaking, it is advisable to wait 3 to 4 months before applying for major credit. Here is why:
- Credit bureaus can take up to 20 working days to fully process the flag removal and update all accounts
- Individual creditors may take additional time to update their own records
- Your credit score needs time to recalculate and reflect your improved status
- Lenders prefer to see a period of clean credit history before approving new applications
Start with smaller credit products — such as a store account or prepaid credit card — to begin building a positive payment history. After 3 to 4 months, you will be in a much stronger position to apply for larger credit like vehicle finance or a personal loan.
Timeline: From Last Payment to Full Financial Freedom
Here is a step-by-step timeline of what happens after your last debt review payment:
Your Payment Distribution Agency (PDA) processes your final debt review payment and distributes it to the remaining creditor(s).
Each creditor confirms in writing that the account has been settled in full. Your debt counsellor collects these paid-up letters — this can take 1 to 2 weeks.
Once all paid-up letters are received, your debt counsellor issues the clearance certificate (Form 19) within 7 business days.
Your debt counsellor sends the clearance certificate to TransUnion, Experian, XDS, Compuscan, and the National Credit Regulator.
Credit bureaus process the flag removal within 20 working days (~30 calendar days). All accounts are updated to 'paid up' status.
Your credit profile returns to normal. You are no longer listed as under debt review and are free to apply for new credit.
You can apply for credit again, your credit score begins to recover, and you have a clean financial slate. The entire process from last payment to full freedom typically takes 4 to 8 weeks.
The clearance certificate is the finish line of your debt review journey. It officially confirms you are debt-free and restores your full financial freedom.
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What to expect after completing debt review — rebuilding your credit, budgeting tips, and staying debt-free.
A complete guide to debt review in South Africa — how it works, who qualifies, and what to expect.
Frequently Asked Questions
How long does it take to get a clearance certificate?
Your debt counsellor must issue the clearance certificate within 7 business days of confirming that all debts included in the debt review have been paid in full (or all debts except your home loan). You should receive it promptly once paid-up letters from all creditors have been collected.
Do I need a clearance certificate if I still have a home loan?
Yes. If all your debts except your home loan have been settled, your debt counsellor can issue a clearance certificate under Section 71(1)(b) of the National Credit Act. The debt review flag is removed from your credit profile, and you continue paying your home loan independently at the restructured interest rate.
Can I apply for credit without a clearance certificate?
No. While the debt review flag remains on your credit profile, credit providers are legally prohibited from granting you new credit. You must first obtain your clearance certificate and have the flag removed before you can apply for any new credit.
What if my creditor will not issue a paid-up letter?
If a creditor refuses to issue a paid-up letter despite the debt being settled, your debt counsellor can escalate the matter to the National Credit Regulator (NCR). The creditor is legally required to issue confirmation once the account is paid in full. Your debt counsellor can also obtain settlement confirmation directly from the Payment Distribution Agency (PDA).
Does a clearance certificate expire?
No. A clearance certificate does not expire. It is a permanent record confirming that you completed your debt review and that all included debts were settled. You should keep your clearance certificate and all paid-up letters in a safe place for future reference.
