The NCA requires, as a precursor to litigation on a credit agreement, that one sends a ‘s129’ notice, advising the debtor of his rights in terms of the NCA, and a few other formalities. Where a credit provider institutes an action to enforce payment of a debt arising from a credit agreement, the running of prescription in respect of the debt –which in SA is 3 years – is interrupted by service of the summons. This is also the case where one has neglected to serve the notice prior to issuing summons.
Therefore if a credit provider issues summons and fails to attach a s129(1) notice, the summons is not considered void and prescription is still interrupted.
Link to full judgment here
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