Best Tips on How to Deal with A Letter of Demand (Section 129 Notice) From Your Creditors

Published by The National Debt Review Center on

It’s never good news to receive a letter of demand also known as a section 129 notice from your creditors. But don’t let it leave you feeling like there’s no way out. This article will discuss the process of dealing with a letter of demand (section 129 notice) from your creditors and advise on what steps you should take in response.

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A letter of demand or section 129 notice is a permanent demand for money owed. Section 129 notices are used by individuals, businesses and agencies when they feel that it is time to take their creditor to court in order to secure payment of an outstanding debt or where they have been unsuccessful in arranging payment by any other means. If you receive a Section 129 notice, then it is important that you seek the advice of a qualified legal professional or debt counsellor as soon as possible.

Letter Of Demand

What is a Letter of Demand?

A section 129 notice is the final stage before the legal procedure begins, and it is one of your last options to prevent legal action from your creditors. The notice is delivered in accordance with Section 129 of the National Credit Act (NCA) and informs the consumer that they are in arrears of a particular amount in unpaid instalment(s) as of a certain date.

After the client has been in arrears for more than 20 working days, the credit provider or their attorney may issue notice in accordance with Section 129 of the NCA at any time. The credit provider may not take any legal action until it has completely satisfied with the NCA requirements outlined in sections 129 and 130.

The section 129 notice is your final chance to act before your credit providers take significant legal action against you. Seeking a debt management plan, such as debt counselling, can help you avoid legal action and keep your assets from being repossessed. You can talk to one of our experienced advisors today about one of our life-changing solutions.

Why would your creditors issue a Letter of Demand?

Your creditors may issue you a section notice if they believe you have defaulted on your repayments or if they are unsure whether you will be able to make future repayments. This notice allows them to take legal action against you if you do not make the necessary payments. If you are issued with a section notice, it is important to take action immediately and contact your creditors or us on 0410125036 to discuss your options.

How to respond to a Letter of Demand in South Africa?

If you receive a section notice, it is important to act quickly and effectively in order to protect your rights.

  1. You should check the notice to make sure that it has been issued correctly. This includes checking that the debt is accurately stated, and that the correct procedure has been followed. If there are any errors, you can contact the creditor to have them rectified.
  2. You should consider whether you are able to pay the debt in full. If so, you should do so as soon as possible to avoid further action being taken against you. If you cannot pay the debt in full, you should try to negotiate a payment plan with the creditor. This will show them that you are willing to try and repay the debt and may prevent further action being taken against you.
  3. Contact The National Debt Review Center on 0410125036 if you are unable to reach an agreement with the creditor or cannot afford the expected payment.

What does a Letter of Demand or a Section 129 notice look like?

A section 129 notice must meet the general standards and include several crucial data such as your name, ID, and address. A section 129 notice should be properly dated and identify the agreement on which the client is in default as well as the particular sums owed. It should also explicitly state that the letter serves as a “notice in accordance with Section 129.” The notice should say unequivocally that the consumer is in default. The credit provider’s intentions to enforce his rights under the agreement must be clearly specified, as must alternatively remedies and a timeline to avoid additional legal action.

The NCA specifies precise criteria for determining the validity of a 129 notice.

These are the following:

  • Notification of the consumer’s default should be provided. It is critical and required that the consumer be made aware of his default.
  • The notification should be in writing.
  • The notification should follow a specific format, stating in no uncertain terms what the consumer’s rights and options are; and
  • The notification should disclose the credit provider’s intention to reconcile and negotiate a plan to help the consumer out of his default.

Section 129(1)(b) adds to the above mentioned criteria by stating that:

  • a) Legal action may not be taken against a consumer in default if the notice as envisaged in section 129(1)(a) has not been delivered.
  • b) Legal action may not be taken against a consumer should the requirements as stated in Section 130 not be met

The NCA Section 129 notice is the final stage before legal action and should be taken extremely seriously to avoid legal action. You still have options at this time, so do not be afraid to seek the expert assistance of a debt counsellor.

Frequently Asked Questions About Letter of Demands – Answered.

How serious is a letter of demand?

Although a demand letter is not as serious as a lawsuit, the court recognizes it as a good-faith effort to resolve the situation and avoid wasting unneeded court resources.

What is the aim of a demand letter?

The principal goal of a demand is to notify the defendant that the plaintiff has a cause of action against him or her and convince him or her to settle the claim or eliminate the cause of complaint within a certain time frame in order to avoid formal proceedings.

What comes after a letter of demand?

If the debtor does not comply with the letter of demand, summons will be issued, and the debtor must defend the summons, or a judgment will be given against them.


The National Debt Review Center

Welcome to The National Debt Review Center, where financial stability and integrity are our guiding principles. We strive to deliver the utmost best in customer service & act with the highest standards of integrity. We are South Africa's best Debt Counselling & Debt Review Removal Company. NCR Registration Number - NCRDC3106