Acknowledgment of debt: check the NCA before signing

An acknowledgment of debt records an obligation and agreed payment terms. Its title does not determine whether the National Credit Act applies. The original transaction, the parties and the proposed arrangement need to be assessed.

Before drafting, collect the original agreement, invoices, payment records and an up-to-date reconciliation. Separate the principal amount from interest, fees and collection charges. Record what is disputed and what both parties accept.

Write down the proposed instalment amounts and dates, and identify any new charge, interest term, security or suretyship. Do not assume that removing interest from a new form removes obligations that arise from the underlying transaction.

If the NCA position is uncertain, obtain individual legal advice before signing or relying on the document. The MyAgreements AOD source is limited to an existing unsecured debt and does not provide a general-purpose loan, security or debt-enforcement service.

Source: National Credit Act 34 of 2005, particularly sections 4 and 8. https://www.gov.za/documents/national-credit-act

Read the scope of the Acknowledgment of Debt and Payment Agreement: https://www.myagreements.co.za/agreements/acknowledgment-of-debt-and-payment-agreement

General information from MyAgreements. Templates and document administration do not replace advice on your circumstances. No conveyancing, notarial or other reserved work is provided.