Tuesday, October 19, 2010

Default listing: the letter of demand vs. the lease agreement

The landlord / estate agent cannot circumvent the National Credit Act NCA) but relying on clauses in the lease agreement.

The National Credit Act specifically regulates the process to be followed prior to loading a default on the credit bureau.

The tenant must be sent a letter of demand specifically stating the intention to list default information on the credit bureau. The landlord / estate agent must wait 20 business days from the date of sending the letter of demand, if the account is not settled in full – then a default can be loaded.

The landlord / estate agent rely on clauses in the lease agreement in order to circumvent the NCA requirement to send out the letter of demand, state intention to list wait and 20 business days.

If the default is loaded and the tenant disputes the listing with TPN on the grounds of either no letter of demand with intention to list or no 20 business days’ notice; TPN will contact the landlord / estate agent to request a copy of the letter of demand and count the days from date of sending to date of listing. If we find that either no letter was sent, or the full 20 business days’ notice was not given we will remove the default.

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