Receiving a Section 129 notice can be frightening, but it is not the end of the road. In fact, it is your creditor legally giving you an opportunity to fix the situation. Understanding what this notice means — and acting quickly — can save your car, your house, and your financial future.
Time-sensitive: You have 10 business days to respond to a Section 129 notice. Do not ignore it. Contact a debt counsellor today.
What Is a Section 129 Notice?
A Section 129 notice is a formal legal letter required by Section 129(1)(a) of the National Credit Act (NCA). Before a creditor can take legal action against you for defaulting on a credit agreement, they are legally required to send you this notice.
The notice must inform you that you are in default, state the amount owing, and advise you of your rights — including the right to refer the matter to a debt counsellor.
What Does the Notice Say?
A valid Section 129 notice must include:
- Default details: The specific credit agreement you have defaulted on and the amount in arrears
- Your right to catch up: You may pay the outstanding arrears within 10 business days to bring the account up to date
- Your right to seek help: You may refer the matter to a debt counsellor, alternative dispute resolution agent, or consumer court
- Consequences: If you do not respond within 10 business days, the creditor may proceed with legal action
Your Three Options
Pay the Arrears
If you can afford to pay the outstanding amount within 10 business days, this will bring your account back into good standing and no further action will be taken.
Best for: If you have the funds and the default was a once-off situation.
Apply for Debt Review
Contact a registered debt counsellor to apply for debt review. This triggers legal protection immediately — creditors must halt all legal proceedings. Your debts will be restructured into a single, affordable payment.
Best for: If you are over-indebted and cannot afford to catch up on your own. This is the most common and recommended option.
Negotiate Directly
Contact the creditor directly to negotiate a payment arrangement. However, they are under no legal obligation to agree, and this does not provide any formal legal protection.
Best for: If you have a temporary cash flow issue and a good relationship with the creditor.
What Happens If You Ignore the Notice?
If you do not respond within 10 business days, the creditor can:
- Apply for a court judgment — this is a formal ruling against you that appears on your credit record
- Obtain a garnishee order (emoluments attachment order) — a portion of your salary is deducted directly by your employer to pay the creditor
- Repossess your assets — your car, furniture, or other financed items can be taken
- Pursue foreclosure — if the debt is a home loan, the bank can apply to sell your property
Why Debt Review Is the Best Response
If you have received a Section 129 notice, it is a clear sign that you are in financial difficulty. Debt review addresses the root cause — not just the single account in default, but your entire debt situation:
- Immediate legal protection — creditors must stop all legal proceedings
- All debts included — not just the account that sent the Section 129, but all your credit agreements
- Reduced payments — interest rates are negotiated down and repayments are restructured
- Asset protection — your car, home, and possessions are protected from repossession
Is Your Section 129 Notice Valid?
For a Section 129 notice to be valid, it must meet specific legal requirements. If the notice is defective, the creditor cannot legally proceed with enforcement. Common defects include:
- Not delivered to the correct address
- Not specifying the correct arrears amount
- Not informing you of your right to seek debt counselling
- Not providing the required 10 business day window
A debt counsellor can review the notice to determine if it is valid and advise you on your rights.
Act Now — Time Is Critical
The 10 business day window is your opportunity to protect yourself. Every day you delay brings you closer to potential legal action, asset repossession, and judgment. Contact a registered debt counsellor today — the initial assessment is free, fast, and completely confidential.
Frequently Asked Questions
Is a Section 129 notice the same as a summons?
No. A Section 129 notice is a pre-legal warning — it is not a court document. It is the creditor's obligation to give you a chance to catch up or seek help before they can take legal action. A summons is a court document that comes later if you do not respond to the Section 129 notice.
How long do I have to respond to a Section 129 notice?
You have 10 business days from the date the notice is delivered to respond. During this time, you can catch up on payments, negotiate with the creditor, or apply for debt review. After 10 business days, the creditor may proceed with legal action.
Can I still apply for debt review after receiving a Section 129?
Yes — and the Section 129 notice itself tells you this is an option. You can apply for debt review at any point before the creditor obtains a court judgment. The sooner you apply, the better your protection.
What if I have already received a summons?
If you have received a summons (not just a Section 129), the situation is more urgent but debt review may still help. Contact a debt counsellor immediately. Depending on where in the legal process the creditor is, your counsellor may be able to halt proceedings.
