If your debtor has defaulted, you will need to send a formal demand (or appoint an attorney to do so). It is recommended – generally – that the demand is framed in terms of section 129 of the National Credit Act, 2008. Please also remember that if you intend to institute action if payment isn’t received the letter should also be sent by registered post.
With the introduction of the National Credit Act, 2008 and the Protection of Personal Information Act, 2012 (amongst other regulatory matters) it is critical for most businesses to undertake a review or update of their current credit application forms. This document is compliant with the current legislative framework. It is designed for businesses operating in the print sector.
A written acknowledgement of debt is an important document. It confirms a debtor’s indebtedness and also provides for repayment terms. If the creditor subsequently needs to institute legal proceedings, this document will be critical. This AOD also includes a suretyship by a third party, providing additional security for the repayment of the debt.