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
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