The main aim of the National Credit Act 34 of 2005 as amended (“NCA”) is to prevent over-indebtedness and to provide more accessible structures for dispute resolution. Among other solutions, the NCA aims to achieve this by creating a more transparent platform, which bodes well for debtors and creditors alike.

Credit providers can no longer institute legal action against a debtor without first issuing a letter of demand (a section 129 notice). This letter contains prescribed information and prescribes delivery of the letter of demand: “… unless otherwise provided for, means sending a document by hand, by fax, by e-mail, or registered mail to an address chosen in the agreement by the proposed recipient, if no such address is available, then the recipient’s registered address.

A now established principle is that: “In practical terms, this means the credit provider must obtain a post-dispatch “track and trace” print-out from the website of the South African Post Office.”

If a consumer states in contested proceedings that notice did not reach them, then the court will have to investigate the matter to establish if the notice was delivered.

PocketAdvisor teaches users to identify critical ways to curtail the eventuality of bad payers.  In addition, we provide all the relevant legal structures, documents and contracts needed. For more information please contact us or take one of our programs today!

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Nicolene Schoeman-Louw