In the South African context, a section 129 notice is a written notice or letter given to a consumer who has not been able to keep up with their payments. The consumer, at this point, has also not made alternative arrangements for the payment of their debt. A section 129 notice, also known as an s129 letter of demand, comes from Section 129 of the National Credit Act.
It’s important to note that according to the National Credit Act, and the terms of section 129, this is a required step that the creditor has to take before they can take legal action against a consumer (you).
When can I be given a Section 129 letter of demand?
- You can receive the notice in terms of section 129 after being in arrears for 20 business days or after 20 business days of not paying the debt according referring to the credit agreement. For example, if you are supposed to make payment on 25 November, and you have not made a payment or alternative arrangements by 23 December, you can be issued with a Section 129 notice.
- The delivery method of this Section 129 Notice will usually be by registered mail or personally.
What is included in a Section 129 letter?
Some of the most important information included in the section 129 notice is:
- That the account is in arrears (you have money owing).
- The amount of your outstanding debt.
- The alternative routes available to you if you are still unable to keep up with your payments.
This is an example of an s129 notice template that a creditor may use.
As is outlined in this template, if you fail to respond to the creditor by not taking any of the proposed alternative routes, they make take legal action against you and begin the debt collection process.
How do you respond to Section 129?
To avoid legal proceedings, one of the routes a creditor should make you aware of is seeking out a debt counsellor to undergo debt counselling (debt review).
Debt counselling is a legal process that helps you pay back your debt, while keeping your assets like your home and car protected. It's important to note that when you undergo the debt counselling process, you will no longer be allowed to apply for credit.
While this may seem daunting—especially if you have been surviving on credit—relying on credit to survive is not sustainable. And if you don't stop taking on further credit, you will continue receiving these letters of demands. Or worse, your assets could be repossessed.
A few other alternative routes a creditor should highlight are:
- Seeking an alternative dispute resolution agent
- Taking this matter up with the consumer court or ombud with jurisdiction
How serious is a letter of demand?
The reason you received a Section 129 notice is probably that you are unable to pay your debt. It’s not because you don’t want to. We understand. With all the fuel and interest rate hikes, keeping up with all your repayments can seem impossible.
After receiving a Section 129 notice, it's also important to realise how serious this is. If a creditor has served you with a Section 129 notice, they can, following this, take legal action against you.
While this is a lot to take in, we want to assure you that there is hope. These notices can stop. All the creditors calling you demanding money you simply don’t have can stop.
How? With debt counselling at Meerkat.
With debt counselling at Meerkat, you can:
- Pay up to 50% less on your monthly debt payments
- Reduce your interest rates on your debt from 20% to 5%. How? Our experienced, registered debt counsellors will negotiate with your creditors on your behalf.
- Consolidate all your debt into ONE monthly repayment
- Protect your assets (home and car).
How does debt counselling work?
After filling in this contact form, one of our knowledgeable Debt Counsellors will contact you to give you a free and confidential consultation. Here, we will determine if you actually are over-indebted and the best next-steps to get you debt-free.
Read this blog post to find out more about the debt counselling process.
Why Meerkat?
Meerkat is registered with the NCR (National Credit Regulator – NCRDC2613). We understand that life happens, and you can start to fall behind on your debt repayments. We can help you regain financial control and walk the journey with you to becoming debt-free. As a team, we’re looking out for you.