Section 129 of the National Credit Act 34 of 2005
When you are 20 business days or more in default with your payments in terms of a credit agreement, you will be advised of your default by way of a Notice in terms of Section 129 (hereinafter “the notice”) of the National Credit Act (hereinafter “the NCA”)
In terms of the aforesaid notice, you will be advised that you are indebted to the creditor and the amount you are indebted towards the creditor.
In terms of Section 129(1)(a), your default will be brought to your attention. You will be advised that you may refer the credit agreement to a debt counsellor, an alternative dispute resolution agent, consumer court or ombud with jurisdiction in order to help resolve any dispute you might have under this agreement, or to develop and agree on a plan to bring the payments under this agreement up to date.
You will be provided with 10 (ten) business days since the delivery of the Section 129 notice to rectify your default or to refer the matter as explained above.
Should you fail to respond to the aforesaid notice or fail to refer the agreement within 10 (ten) business days, further legal action may be taken against you.
Section 81(2) of the Act states that, before entering into a credit agreement the credit provider will attend to a financial assessment and will grant credit to you based on the outcome of the aforesaid financial assessment.
The aforesaid credit assessment is done in order to avoid reckless credit being granted.