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Practice area

Consumer Credit and Credit Agreement Attorneys

PM & Co assists consumers and credit providers with National Credit Act compliance, debt disputes, enforcement steps and credit agreement litigation.

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Legal context

Credit Agreements & Consumer Credit

Credit agreements and consumer credit law deals with the rights and obligations of consumers, credit providers, debt counsellors and credit bureaus in relation to loans, credit facilities, instalment agreements, suretyships and credit enforcement. The correct procedure is often as important as the merits of the matter. A missed notice, incorrect court process or poorly drafted document can affect the client's legal position, costs and available remedies.

The main legal framework includes the National Credit Act 34 of 2005, the National Credit Regulator, the National Consumer Tribunal, credit bureau processes, debt review procedures and court rules for enforcement. Depending on the issue, the matter may involve the Magistrates' Court, High Court, National Credit Regulator, National Consumer Tribunal, debt review process or credit bureau process. The correct route must be selected at the start because notices, remedies and time periods differ.

Clients usually need an attorney when a consumer receives a section 129 notice, is over-indebted, disputes a credit bureau listing, alleges reckless credit, faces repossession, or a credit provider needs to enforce a credit agreement lawfully. Early legal input helps identify the client's rights, the correct process, the evidence needed and whether negotiation, mediation, urgent relief or formal proceedings are appropriate.

How PM & Co can help

  • Review credit agreements, section 129 notices and enforcement documents.
  • Advise consumers on rights, debt review, reckless credit and credit bureau disputes.
  • Assist credit providers with compliant enforcement and recoveries.
  • Respond to summonses, default judgment steps and repossession threats.
  • Engage with credit providers, debt counsellors, NCR, NCT or ombud processes where appropriate.

Common matters we assist with

  • Section 129 notices and pre-enforcement advice.
  • Vehicle finance and repossession disputes.
  • Personal loans, store accounts and credit card disputes.
  • Debt review complications and termination disputes.
  • Reckless credit allegations.
  • Credit bureau listing disputes.
  • Credit provider compliance and collection processes.

When to seek legal help urgently

  • You received a section 129 notice or summons.
  • A vehicle or financed asset may be repossessed.
  • Default judgment has been granted or threatened.
  • Debt review has failed or a credit provider terminated participation.
  • You believe a credit bureau listing is incorrect and causing harm.
  • A credit provider is enforcing without proper notices.

Legal framework

The right route matters.

Legal matters often turn on the correct statute, court process, notice, evidence and deadline. PM & Co uses the consultation to understand your story first, then connects the legal framework to your specific facts and documents.

What happens next

A structured route from concern to action.

Consult PM & Co before signing a settlement, surrendering an asset or ignoring a credit notice.

  1. 01

    Step 01

    We confirm whether the National Credit Act applies.

  2. 02

    Step 02

    We check notices, balances, arrears and procedural compliance.

  3. 03

    Step 03

    We advise on remedies, negotiation, debt review, defence or enforcement.

  4. 04

    Step 04

    We prepare responses, settlement proposals, court papers or complaints where appropriate.

  5. 05

    Step 05

    We help clients understand the consequences before committing to a payment arrangement.

Documents checklist

Documents that may later assist

For the first consultation, the most important thing is to explain what happened, what outcome you need and whether there are urgent dates. After we understand the matter, we will confirm which documents are actually required.

  • Credit agreement, quotation and pre-agreement statement.
  • Section 129 notice and proof of delivery, if available.
  • Account statements from inception or at least recent statements.
  • Proof of payments, debit order records and settlement offers.
  • Summons, default judgment, warrant or sheriff's documents.
  • Debt review application, proposal, court order and debt counsellor correspondence.
  • Credit bureau report and dispute reference numbers.
  • Income and expense records from the time of credit application, if reckless credit is alleged.
  • Correspondence with credit provider, attorneys, NCR, NCT or ombud.
  • Any voluntary surrender, settlement or acknowledgement of debt documents.

This content is general information about South African consumer credit law. It is not legal advice and must be applied only after reviewing the credit agreement, notices, payment history and procedural documents.

Questions clients ask

Credit Agreements & Consumer Credit FAQs

What is a section 129 notice?

A section 129 notice is a statutory notice under the National Credit Act that usually invites a consumer to refer the matter to a debt counsellor, alternative dispute resolution agent, consumer court or ombud before enforcement. It is an important warning that legal action may follow. Do not ignore it.

Can a credit provider sue without sending a section 129 notice?

Where the National Credit Act applies, proper pre-enforcement steps are generally required. Whether a notice was validly sent and delivered depends on the facts and documents. An attorney can review the notice, delivery proof and summons to assess possible defences.

What is reckless credit?

Reckless credit may arise where a credit provider failed to conduct the required assessment or granted credit despite information showing the consumer could not afford it. It is a legal issue that requires evidence of the application process, affordability assessment and financial position at the time.

Can my car be repossessed without a court order?

Repossession is legally sensitive. A consumer should not sign a voluntary surrender or handover document without understanding the consequences. If court proceedings have started or a sheriff is involved, obtain urgent advice.

Does debt review stop legal action?

Debt review can protect a consumer in certain circumstances, but protection depends on timing, compliance and the status of the credit agreement. If legal action began before debt review, or if debt review has been terminated, the position may differ. Documents must be checked.

Can I dispute an incorrect credit bureau listing?

Consumers can dispute inaccurate information with the credit bureau and, if necessary, escalate to the NCR or other appropriate forum. Supporting documents are important. An attorney can assist where the listing arises from a legal dispute or enforcement process.

Can a credit provider add legal fees and interest?

Interest, default charges and legal costs depend on the credit agreement, the National Credit Act and the steps taken. Incorrect balances can be challenged. A statement, payment history and agreement should be reviewed before accepting the claimed amount.

What happens if I ignore a credit summons?

Ignoring summons can lead to default judgment, which may allow execution steps and affect credit records. Time periods are strict. A person who receives summons should obtain advice immediately, even if they believe the debt is incorrect.

Can a credit agreement prescribe?

Some debts may prescribe if not interrupted by payment, acknowledgement of debt or legal process, but prescription is technical and fact-specific. Never assume a debt has prescribed without checking dates, documents and any admissions or judgments.

Should I sign an acknowledgement of debt?

An acknowledgement of debt can create strong evidence of liability and may interrupt prescription or include consent to judgment. It should be reviewed before signature, especially where the balance, interest, costs or affordability is disputed.

Let us help you choose the right next step.

Share the documents you have, the deadline you are facing and the outcome you need. PM & Co Inc Attorneys will guide you to the correct consultation route.

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