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A Letter of Demand is a letter, on your company or business’ letterhead, that is sent to a debtor to recover any outstanding amounts owed to you for services rendered or products delivered. This is the first step in getting your money back.

A Section 129 Letter of Demand is a Notice in terms of the National Credit Act (NCA), and is used is used to advise a consumer that they are in arrears of a certain amount in unpaid instalment(s) at a given date. This type of demand is used when you are a credit provider in terms of the NCA and a client has been in arrears for more than 20 business days. You as credit provider may not proceed with any legal action without having fully complied with the NCA requirements as contemplated in section 129 and section 130 of the NCA.

√ Attorney approved √ Practical points considered

Example uses of this document:This Letter of Demand states the reason for the amount being due and payable and affords the other party a specific number of days to make the payment. If the payment is not made, as requested, legal steps or other steps could be taken.

You delivered a vehicle or product to third party, or business, and the amount has not been paid to you as agreed. Verbal agreements are also agreements.

You rendered a service to a third party, or business, and the amount has not been paid to you as agreed. Verbal agreements are also agreements.

It may also be used when you paid for a service, and the service provider fails to deliver.

Contents of letter

• The reason for the amount being due and payable.
• The amount to be paid.
• The time period within which the amount is to be paid.
• That further or legal steps will follow if the amount is not paid as requested.

Draftsman

This document was written for Agreements.org by a Senior Attorney (Admitted in the High Court) with more than 18 years’ experience. It complies with current South African law.