What is Section 129 of the National Credit Act?
Section 129 of the National Credit Act requires the creditor to specify the default including the actual amount of the arrears. The requirement for ‘drawing the default to the attention of the consumer’ means more than just the fact that the consumer is ‘in default’.
What is the purpose of a section 129 letter?
Named after a section of the National Credit Act, a section 129 notice is a letter issued by a credit provider when you are at least 20 days behind on your payments. It’s a notice of “impending” legal action, which means that legal action will be taken against you if you don’t act on the notice.
What is the main purpose of the National Credit Act?
Purpose of the National Credit Act The Act has three main purposes, in terms of section 3; to promote and advance social and economic welfare of South Africans; to promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumer.
What are the essential details to be included in a notice in terms of section 129 of the National Credit Act?
A section 129 notice should be clearly dated and should state the agreement which the client is in default and the specific amounts thereof. It should also clearly indicate that the letter serves as “notice in terms of section 129”. The notice should state in no uncertain terms that the consumer is in default.
How many types of credits are there?
three
There are three main types of credit: installment credit, revolving credit, and open credit. Each of these is borrowed and repaid with a different structure.
How does the National Credit Act protect consumers?
The Act entrenches a number of fundamental rights of consumers in the credit market, including protection against discrimination in credit granting, the right to be given reasons for credit being refused, or discontinued, the right to information relating to the agreement, in an official language, and in plain and …
What is the impact of National Credit Act?
An overall analysis revealed that the application of the NCA had a positive impact on the affordability of home loans in the research area and that compliance with NCA, when granting credit, resulted in the reduction of reckless lending, a decline in the level of consumer indebtedness and a reduction in payment default …
Can a juristic person apply for debt review?
Only over-indebted consumers who are natural persons may apply for debt counselling, juristic persons may not apply.
What is a credit agreement in terms of the National Credit Act?
In terms of the NCA, for an agreement to constitute a credit agreement, there has to be money lent, payment of an amount owed by one person to another being deferred, and interest levied since interest is the cost of the privilege to lend money.
What is the difference between Section 129 and letter of demand?
The section 129 letter is derived from the National Credit Act of 2007 (NCA). Unlike the letter of demand, this notice stipulates certain timeframes into the default recovery process before enforcing the rights of the credit provider.
What is Section 129 of the Consumer Credit Act?
The section 129 obligation on a credit provider to ‘draw the default to the notice of the consumer in writing’, is discharged, in the words of section 65 (2) (a) by the credit provider ‘making the document available to the consumer’.
What is Section 129 of the NCA?
Section 129 of the NCA sets out the procedures a credit provider must follow before enforcing a debt. Two important questions now arise, namely: 1. What steps should a credit provider take in order to ensure that a section 129 notice (of default) actually reaches a consumer before it may commence litigation? 2.
What is a section 130 (4) of the National Credit Act?
Section 129 of the National Credit Act requires the creditor to specify the default including the actual amount of the arrears. The requirement for ‘drawing the default to the attention of the consumer’ means more than just the fact that the consumer is ‘in default’. Section 130 (4) gives the debtor an opportunity to remedy the default.
What happens if a section 129 notice does not reach you?
If a consumer wished to contest this and avers that the section 129 notice did not reach him/her, then the court must establish the truth of the consumer’s claim and if it finds that the credit provider did not act correctly, then the matter is simply adjourned to allow the credit provider to rectify the omission Ian Mc Laren