What are the legal implications of NCA Section 129 for credit providers?

NCA Section 129 outlines the procedures credit providers must follow when a consumer account is in arrears. It requires lenders to send a formal notice to the consumer, informing them of the outstanding amount and outlining their options.

• Notice of Default: Credit providers must send a written notice to the consumer, specifying the amount in arrears and the due date for payment.

• Options for the Consumer: The notice must outline the options available to the consumer, including:

  • Paying the full amount

  • Negotiating a payment plan

  • Seeking assistance from a debt counselor or other relevant authorities

• Legal Action: If the consumer fails to respond to the notice or take necessary action, the credit provider may initiate legal proceedings to recover the outstanding debt.

By complying with Section 129, credit providers can ensure that they are acting fairly and ethically while protecting their interests.