Final clarification – Letters of demand in terms of the National Credit Act

The main aim of the new National Credit Act (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.

In a major breakthrough since the Act’s inception, credit providers can no longer institute legal action against a debtor without first issuing a letter of demand (a section 129 notice). There has been some debate and speculation about these notices, but a recent Constitutional Court judgement has now finally clarified the issue of delivery.

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