What is the difference between a section 129 letter and a letter of demand?
The following table represents the difference between a section 129 notice and a letter of demand.
|SECTION 129||LETTER OF DEMAND|
|Derived from The National Credit Act 2007||Derived from the Common Law Act prior to 2005|
|Introduces timeframes into the default recovery process ie. 20 business days in default and furthermore 10 business days should elapse before enforcing the rights of the credit provider.||Has no standard time frames but relies on the terms and conditions given in the credit agreement.|
|Seeks to educate and protect the consumer of his rights and possible remedies to prevent further legal action||Seeks more to protect the credit provider from loss under a credit agreement|
|Standard process and format which saves time by giving time frames to be adhered to in the notice process which can be verified before a court of law||Will require the court to revisit the specific agreement to ascertain the credit providers claims are reasonable and fair|
|Requires a specific prescribed format of drafting the notice later|
To learn more about a section 129 notice or letter of demand, contact DebtBusters on 0869990606