The Section 129(1)(a) notice in terms of the National Credit Act 34 of 2005 and the Constitution

Abstract

Section 129(1)(a), read in conjunction with section 130(1)(a) of the National Credit Act 34 of 2005 (“NCA”), imposes a requirement on a credit provider to deliver a notice that brings a default in terms of a credit agreement to the notice of the consumer prior to instituting legal proceedings to enforce the agreement. Previously, there was uncertainty with regard to what constitutes delivery of a section 129(1)(a) notice by a credit provider, as section 129 of the NCA did not prescribe a method of delivery, and the courts thus had to determine what constituted delivery. The issue was determined on two occasions by the Constitutional Court (“CC”), with the second occasion clarifying the legal position taken by the CC in the first occasion. Consequently, the legislature amended section 129 of the NCA to prescribe a method of delivery. This dissertation interrogates the notice in terms of section 129(1)(a) of the NCA and its interpretation with reference to the Constitution of the Republic of South Africa, 1996, and recommends steps for credit providers to comply with the requirements of such notice.