WHAT IS A SECTION 129 LETTER?
A Section 129 letter is a notice sent by a credit provider to a consumer who is in default of a credit agreement in terms of section 129(1)(a) of the National Credit Act 34 of 2005, before any legal action can be taken against the consumer.
WHAT SHOULD YOU DO WHEN YOU RECEIVE A SECTION 129 LETTER?
One of the options available to the consumer is to consult with a debt counsellor, should the consumer not be able to meet their monthly debt obligations timeously.
Other options available to the consumer is to refer the matter to an ombudsman with jurisdiction, an alternative dispute resolution agent or a consumer court in order to resolve the matter.
The consumer has 10 (ten) business days to respond to the notice.
Should the consumer fail to respond to the notice, as well as remain in default for a further 20 (twenty) business days, the credit provider can proceed with legal proceedings against the consumer.
This is a letter that the consumer should not ignore and seek immediate assistance.
