I’m unable to obtain credit. How can I clear my name?

A Fin24 reader who was under debt review wants to know why his applications for credit is being denied, after being told that he had paid up his outstanding debt. He writes: 

I was under debt review and paid up until March 2012. The money was deducted from my salary.

When the company stopped deducting the money, I was told the debt that was [cleared when] the debt counsellor was paid up. Now, everywhere I apply for credit, it is declined. How do I clear my name? 

Neil Roets, founder and CEO of Debt Rescue responds:

There are a few factors to look at when approaching this situation. It needs to firstly be established why the credit providers are declining the credit application.

If it is because of the debt review flag, the first thing to do would be to contact the debt counsellor and request them to obtain the paid-up letters for all the accounts that were listed under debt review. Once these are all obtained, the debt counsellor must issue a Form 19 (also known as a Clearance Certificate) to all the credit providers and credit bureaus, and update the debt review status to advise that the Clearance Certificate was issued. 

In the event that not all the debt is paid up, the debt counsellor must request updated balances and establish the reason for any outstanding balances. It is important to then also establish whether any of the debt has possibly prescribed at this point. Any outstanding balance that is not subject to prescription, would need to be settled in order to issue the Form 19. 

If the rejection is not due to the debt review flag, but another reason, that would need to be investigated to rectify the requirements.

*Questions may be edited for brevity and clarity.

Read the full article here.

Like Love Haha Wow Sad Angry

Thank you!

We look forward to the opportunity to get you debt-free!

Did you know?

You can start your application process already. Simply download your assessment or fill in our online application and get one step closer to becoming debt-free with Debt Rescue!

Subscribe to Our Weekly Email

By completing this form, you are providing Debt Rescue with the above personal information and acknowledge the terms of Debt Rescue’s Privacy Notice.