DEBT COLLECTION SERVICES

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:

Utilisation of a debt debt counsellor
Appointment of an alternative dispute resolution agent
Recourse to a consumer court
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.

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 3 : 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

No Response after ISSUING AND DELIVERING OF SUMMONS

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