Delivery of the Compulsory Section 129(1) Notice as required by the National Credit Act of 2005

Keywords: National Credit Act, National Credit Amendment Act, previous consumer-credit legislation, consumer protection, default notice, section 129 default notice, delivery, delivery of the section 129 notice, domicilium address, inform, notify, letter of demand, Post Office track and trace report, 28(1)(d) of the Magistrates' Courts Act 32 of 1944, section 90(2)(k)(vi); jurisdiction

Abstract

In terms of section 129(1) of the National Credit Act 34 of 2005 (NCA), a credit provider first needs to provide a consumer with notice of his default and a list of possible remedies to overcome the default, before enforcing the agreement in a court of law. This ensures that the consumer is given the opportunity to remedy his default by, for example, undergoing debt counselling instead of having to incur legal costs when defending legal action brought against him by the credit provider. Before the National Credit Amendment Act 19 of 2014 came into operation, the NCA neglected to specify how this notice should be delivered to consumers, and this has led to various conflicting decisions. The matter was eventually settled by the Constitutional Court in two separate cases. After the Constitutional Court pronounced on the matter, the National Credit Amendment Act came into operation prescribing the manner in which the notice must be delivered. Consumer-credit legislation that existed prior to the NCA coming into operation generally also made provision for similar notices to be delivered to consumers. In this article we briefly look at how the previous consumer-credit legislation dealt with the delivery of similar notices and also consider how the delivery of notices is currently governed by the NCA. Most of the problematic issues surrounding the delivery of the section 129(1) notice have been resolved, but some still remain. One such example is found in a recent Supreme Court of Appeal case, where despite the correct delivery of the notice to the consumer, the notice caused unintended jurisdictional problems for a credit provider trying to enforce the credit agreement

 

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Author Biographies

Sarah Govender, Department of Public Works in KwaZulu-Natal

Legal Officer and Attorney

Michelle Kelly-Louw, University of South Africa

Professor, Department of Mercantile Law

References

Bibliography

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Legislation
Alienation of Land Act 68 of 1981

Alienation of Land Amendment Act 51 of 1983

Credit Agreements Act 75 of 1980

Financial Services Ombud Schemes Act 37 of 2004

Hire-Purchase Act 36 of 1942

Hire-Purchase Amendment Act 30 of 1965

Interpretation Act 33 of 1957

Limitation of Disclosure of Finance Charges Act 73 of 1968

Magistrates’ Courts Act 32 of 1944

National Credit Act 35 0f 2005

National Credit Amendment Act 19 of 2014

Sale of Land on Instalments Act 72 of 1971

Usury Act 73 of 1968

Government publications

GG 37665 of 19 May 2014

GN R489 in GG 28864 of 31 May 2006

GN769 GG 41017 of 2 August 2017
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Published
2018-12-13
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Articles