What is a section 129 notice? The following tips will help you better understand what a section 129 notice. Read further and get up to date information on how to identify a section 129 notice, as well as consumer tips on a section 129 notice.
The following tips will help you better understand what a section 129 notice:
- The first step in the legal process and should be taken seriously by credit consumers to prevent further legal action
- It is the notice issued in terms of section 129 of the National Credit Act advising a consumer that they are in arrears of a certain amount of unpaid instalment(s) at a given date.
- The credit provider or an Attorney appointed by the credit provider may issue notice according to Sec 129 of the NCA at any time after the client has been in arrears for more than 20 business days.
- The credit provider reserves the right to issue the Section 129 at a time after 20 business of being in arrears
- The credit provider may not proceed with any legal action without having fully complied with NCA requirements as contemplated in Sec 129 & Sec 130
It is important to know how to identify a section 129 notice:
In order to fulfil the general requirements of the notice the Sec 129 notice/ letter should possess a minimum of the following key elements:
- Name, ID and address of the consumer
- Clearly “dated”
- State the agreement which the client is in default and the specific amounts thereof; and
- Clearly, indicate that the letter serves as “notice in terms of Section 129”
- State in no uncertain terms that the consumer is in default
- The intentions of the credit provider to enforce his rights as per the agreement
- Possible remedies to avoid enforcement of the credit agreement by the creditor
- Time frame available to institute remedies to avoid further legal action
- Valid notification of section 129:
The Act prescribes the notification in Section 129(1):
This notification can be broken down into the following notification criteria in order to be considered as valid:
a)Notification of the consumer’s default should be given to the consumer. It is important and a precondition that the consumer be made aware of his default; and
b)The notification should be in writing; and
c)The notification should comprise a certain format, stating in no uncertain terms what the consumer’s rights and options are; and
d)The notification should disclose the intent on the credit providers front to reconcile and negotiate a plan to help the consumer out of his default
Section 129(1)(b) adds to the above-mentioned criteria by stating that:
a)Legal action may not be taken against a consumer in default if the notice as envisaged in section 129(1)(a) has not been delivered; and
b)Legal action may not be taken against a consumer should the requirements as stated in Section 130 not be met
Section 129 notice of the NCA is the start of the legal action and should be taken very seriously to prevent further legal action:
It is always best to deal with the creditors in writing. Keep a copy of times, dates and contacts you have dealt with as this becomes a very important issue when consumers make arrangements, only for the creditors to proceed with the next legal step, a Summons.
Check the date that has been listed on the letter, to the date the letter was posted. It has been known that letters have been sent whereby the dates do not correspond. An example of this is the letter is dated 1 January 2011 but it was only sent on the 4 April 2011.
This letter also advises that it is the creditor’s intentions to take further legal action. Creditors warn consumers that should this letter be ignored, they will enforce their rights to issue a summons which could result in a sale of execution on your home. A further warning is issued, when creditors advise that they intend to supply adverse information through to the credit bureaus.
Make sure to keep yourself up to date on information regarding the section 129 notice.