Paysoft offers a choice of collection (Section 129) letters through various suppliers. Letters can be used as internal collection tools utilising a 3rd party collection agent with debtor payments made directly to the client and not to the 3rd party. It is important to notice that a debtor can only be listed with a Bureau providing that the debt arose from a credit transaction, that the transaction was not disputed and that the debtor was notified in writing of the intention to list. Our collection letters satisfies the legal notification requirements based on the National Credit Act. Paysoft can list these defaulting debtors free of charge on all the major bureaus. Please note that a debtor can not be listed without a valid identification number. If a cell phone number is available the Bureaus will notify the debtor via SMS of the listing.
Why send a Section 129 letter?
Based on the regulations of the National Credit Act it is important to note that a credit provider must notify a debtor, in writing, that he or she is in default and that they have the right to refer the credit agreement to a debt counselor for a debt review, in terms of section 129 of the National Credit Act, before a credit provider may commence with further debt enforcement.
This notification can only be sent to the debtor once he has already been in default for 20 days and a period of 10 days, must lapse after the letter has been sent, before the credit provider can commence with proceedings to recover the debt, in other words hand it over to an attorney or debt collector for recovery.