step 1 National Credit Act 34 of 2005

Section 129 letter

The first step is to establish if the National Credit Act applies to the situation before instructions can be taken and if the creditor is registered with the NCR as a credit provider. Once this has been established a letter via registered mail in terms of Section 129 of the NCA must be sent to debtor which must include the following option that the debtor can take:                                                                                                                      1. Utilisation of a debt debt counsellor                                                            2. Appointment of an alternative dispute resolution agent                          3. Recourse to a consumer court                                                                      4. Referral to an Ombud with jurisdiction                                                Should the debtor not respond or chose to follow any alternatives as set out in the section 129 letter, summons must be issued. 


The Administration Process Explained

scenario 1                             

DEBTOR RESPONDS to section                         129 letter 

step 1 Debtor signs acknowledgement of debt     

step 2 Debtor pays of  debt without default

scenario 1.1                             

DEBTOR defaults

step 1     Issuing and delivering of summons

step 2   Debtor responds  AND SIGNS                                              ACKNOWLEDGEMENT OF                                                            DEBT AND CONSENT  TO JUDGEMENT

step 3   Debtor pays of  debt without default

scenario 1.2                             

step 1   Debtor does not respond to summons

step 2   scenario 2 applies

scenario 1.3                             

DEBTOR defaults after accepting summons

step 1   obtain section 58 judgement 

debtor employed   

step 1   Emolument Attachment Ordert 

step 2   receive payment from employer   

debtor unemployed   

step 03  scenario   2.1 applies


scenario 2

 DEBTOR Does not RESPOND TO                      SECTION 129 LETTER               

step 01 Issuing and delivering of summons

step 02 Debtor enters a plea to defend

step 03 litigation starts

scenario 2.1 


step 1 obtain default judgement

step 2 warrant of execution

step 3 Sheriff attaches movable property of                        debtor

step 4  immovable property seized 

step 5  sale in execution 

step 6  movables exhausted 

step 7  attach movable property 

step 8  sale in execution 

Flow Chart of Litigation Process

flow chart 1
flow chart 2