4.73.14 - Section 129 Notice Improvements

We’ve updated our contract generation process to include improved and compliance-aligned wording that meets recent regulatory requirements. Here’s what’s changed:

Updated Default Notice Wording

Contracts now include a clear and compliant default notice in line with Section 129(1)(a) of the National Credit Act (NCA). The notice provides clients with detailed information about their default status and outlines the steps they can take to resolve the issue.

The updated wording includes:

• A clear statement of the default and the outstanding balance.

• A proposal for resolving the default within 10 business days.

• Options for the client to contact the business, seek assistance, or refer the matter to a debt counsellor or dispute resolution agent.

• A reminder of the potential consequences if the default is not resolved within 20 business days, including legal enforcement.

In terms of section 129(1)(a) of the NCA, your attention is hereby drawn to the fact that you are in default with your obligations under the credit agreement with account number loan_number that you entered into with the business. The arrear amount is balance_due In terms of section 129, read together with section 130 of the NCA, the business proposes that you:

1. Pay the default amount into your account within 10 (ten) business days of receipt of this notice.

2. Contact the business, either in person, on telephone number , or via email at branch_address to assist you in developing a mutually agreeable plan to bring the arrear payment(s) under the loan agreement up to date.

3. Refer the above credit agreement to a debt counsellor, alternative dispute resolution agent, consumer court, or ombud with jurisdiction with the intent to resolve any dispute under the agreement. Should you fail to respond to this notice within 10 (ten) business days from delivery hereof by either rejecting the aforesaid proposal or by failing to respond to this notice at all and should you remain in default with your obligations as aforesaid for a period of 20 (twenty) business days since your default commenced, the credit agreement may be cancelled and we will be entitled to proceed with legal steps to enforce the agreement, which includes issuing a summons against you in a court with the necessary jurisdiction.

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This update ensures that your contracts are fully compliant with the NCA and provide clients with clear, actionable information to resolve defaults.