What is a Letter of Demand?
A letter of demand (aanmaningsbrief) is a formal legal letter sent by an attorney on behalf of a creditor to a debtor. It demands payment of an outstanding amount within a specified period, and warns that legal action will follow if the debt is not settled.
In South Africa, a letter of demand is usually the first step in the debt recovery process. While it is not legally required before you can go to court, most courts expect you to have made a formal demand before issuing summons. It also gives the debtor a chance to pay without the cost and stress of court proceedings.
Why Use an Attorney?
A letter from an attorney carries significantly more weight than a personal demand. It signals that you have professional legal representation and are prepared to take the matter to court.
General Letter of Demand vs Section 129 Notice
There are two main types of letters of demand used in South Africa:
General Letter of Demand
This is used for any outstanding account or debt. It includes:
- Who the creditor is and the outstanding amount
- An interest clause (the percentage charged from date of the letter)
- A 7-day deadline to make payment
- A warning that summons will be issued without further notice
- Bank details for payment
Section 129 Notice (National Credit Act)
If the debt arises from a credit agreement (such as a loan, hire purchase, or credit card), the National Credit Act (Act 34 of 2005) requires a specific notice before legal action can begin. This is called a Section 129(1)(a) notice.
A Section 129 notice must:
- Inform the debtor that they are in arrears for more than 20 working days
- State the outstanding balance
- Advise the debtor to refer the matter to a debt counsellor, Consumer Court, or dispute resolution agent
- Give the debtor 10 working days to respond or settle
- Include banking details and a reference number for payment
"Without a valid Section 129 notice, any legal action taken under a credit agreement can be challenged and potentially set aside by the court."
What Happens After the Deadline?
If the debtor does not pay within the deadline (7 days for general, 10 working days for Section 129), the creditor can proceed with legal action. This typically means:
- Issuing summons through the Magistrate's Court or High Court
- Obtaining a default judgment if the debtor does not defend
- Executing the judgment by attaching the debtor's assets or garnishing wages
The letter of demand itself does not have the force of a court order. But it is a critical step that demonstrates you made a reasonable effort to resolve the matter before going to court.
How to Order a Letter of Demand Online
At Anel Krog Attorneys, you can order a letter of demand online from R100. Choose between a General demand (R100) or a Section 129 NCA notice (R150).
The process takes less than 5 minutes:
- Choose the type (General or Section 129)
- Enter the creditor and debtor details
- Enter the outstanding amount and payment details
- Pay securely online via PayFast
Your completed letter is emailed to you as an editable Word document within 30 minutes.
Get Your Money Back
Order a professionally drafted letter of demand. Attorney drafted, delivered in 30 minutes.
Frequently Asked Questions
What is a letter of demand?
A letter of demand is a formal legal letter sent by an attorney on behalf of a creditor demanding payment of an outstanding debt. It serves as a final warning before legal action such as summons or recovery proceedings.
What is a Section 129 notice?
A Section 129 notice is required by the National Credit Act (Act 34 of 2005) before a credit provider can take legal action against a consumer. It gives the debtor 10 working days to settle, refer the matter to a debt counsellor, or dispute the claim.
Do I need a lawyer to send a letter of demand?
You do not legally need a lawyer, but a letter from an attorney carries significantly more weight. It shows the debtor that you are serious about taking legal action and that a qualified professional is handling the matter.
