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Applying for a default judgment in a case where the National Credit Act (NCA) applies in South Africa involves           specific procedures to ensure compliance with the Act’s requirements. Here’s a detailed guide on how to proceed:

Notice:

1. VERY IMPORTANT: Before you can issue summons, make sure you comply with the Notice required in the NCA:

129. (1) “If the consumer is in default under a credit agreement, the credit provider-

(a) may draw the default to the notice of the consumer in writing and propose that the consumer refer the credit agreement to a debt counsellor, alternative dispute resolution agent, consumer court or ombud with jurisdiction, with the intent that the parties resolve any dispute under the agreement or develop and 45 agree on a plan to bring the payments under the agreement up to date; and

(b) subject to section 130(2), may not commence any legal proceedings to enforce the agreement before-

(i) first providing notice to the consumer, as contemplated in paragraph (a), or in section 86(10), as the case maybe; and

(ii) meeting any further requirements set out in section 130.

• Remember to attach a copy of the Credit Agreement to the Notice.
• If you sent the Notice by Registered Mail, make sure you keep the proof and a copy thereof on file. You need to file the original at court!

Issue Summons:

1. Draft Summons: Ensure that the summons is in the prescribed form and includes all necessary details about the claim.
2. File Summons: File the summons with the clerk of the court to have it issued.

Service of Summons:

1. Serve on the Defendant: The summons must be served on the defendant through the sheriff. The sheriff’s return of  service must be attached to the application for default judgment. Please remember that you cannot serve on a post-box! The magistrate will surely lament the poor Defendant living in a post-box!

• Wait for the Defendant’s Response:
• Prescribed Time: Allow the defendant the prescribed time to respond. This period is usually 10 days for a notice of  intention to defend and 20 days for a plea.

Prepare the Application for Default Judgment:

1. Complete Forms: Complete the necessary forms and ensure all required documents are attached. This        includes the original summons, the sheriff’s return of service, and any other supporting documents.
2. Compliance with NCA: Ensure that the application complies with the NCA requirements, such as providing proof that  the credit agreement is subject to the NCA and that the necessary notices (e.g., Section 129 notice) have been served on the defendant.
3. It is also advisable to do an affidavit to attach to your Default Judgement Application in these matters, where you state all the steps taken and very importantly, state that the credit agreement was not reckless in terms of Section 80 of the Act.

File the Application:

1. Submit the application for default judgement to the Clerk of the Civil Court.

Review and Decision: 

1. The matter will be dealt with in the same way as an ordinary Request for Default Judgement but can be set down to be heard in Motion Court, where you proceed, as with an ordinary Default Judgement, but point out any additional evidence and affidavits necessary.
2. Rule 12(5) states: “The registrar or clerk of the court must refer to the court any request for judgment on a claim founded on any cause of action arising out of or based on an agreement governed by the National Credit Act, 2005, the Credit Agreements Act, 1980 (Act 75 of 1980), or the Consumer Protection Act, 2008, and the court shall thereupon make such order or give such judgment as it may deem fit.”

Serve the Default Judgment:

1. Notify the Defendant: Once the default judgment is granted, ensure that it is served on the defendant. This is typically done by the sheriff.

Important Points to Remember

• Compliance with NCA: Ensure that all procedural steps comply with the National Credit Act, including the service of  necessary notices and the inclusion of relevant documentation.
• Accurate Documentation: Ensure all documents are correctly completed and filed.
• Adherence to Time Limits: Adhere to the prescribed time limits for each step to avoid delays or dismissal of the application. Always read the relevant Rules of Court!

See: National Credit Act [No. 34 of 2005]