Ekurhuleni introduces a debt rehabilitation incentive for customers

Office of the Premier 2022/10/12 - 22:00



Thembisa Shologu

To ease the financial burden faced by customers who are in arrears with their municipal accounts, the City of Ekurhuleni is offering a 50% debt write-off incentive.

The Debt Rehabilitation Incentive will be available to qualifying applicants from 01 September 2022 until 30 September 2023.

According to the city, about 1002 applications have been received by 7 October 2022.

In a statement the city said the incentive is not automatic. Customers will be required to apply for such relief, and those who qualify will receive the incentive between 1 September 2022 and March 2023.

Approved applicants will enter into a consolidated debt agreement to pay the current account in full on or before the due date for a period of 36 months from the date of approval of the application.

Member of the Mayoral Committee (MMC) for Finance, Economic Development and ICT, Fanyana Nkosi, said the incentive will comprise a 50% write-off of debt more than one year on the date of application approval – inclusive of rates, service charges, interest, and other costs.

"The balance of the account on the date of application approval, excluding the current account and after the 50% write-off, will be placed in a consolidated arrangement account to be written off incrementally over a three-year period," Nkosi outlined.

This will be on condition that all scheme provisions are being complied with during this period.

All customer-linked accounts will be consolidated, including hand-over accounts and existing arrangement debt.

City's Spokesperson, Zweli Dlamini, said no once-off or proportional payment would be required in the consolidated arrangement.

Furthermore, consolidated arrangement accounts are excluded from interest or other charges for the duration of the arrangement.

"Failure to comply with monthly current account payment conditions for a period in excess of 60 days will result in immediate cancellation of Consolidated Debt Agreement and reversal of FULL write-off, initial and incremental, to date of cancellation," said Dlamini.

The cancellation of the Consolidated Debt Agreement will result in the consolidated debt being handed over for legal collection and disconnection of all services to property in terms of the Credit Control Policy.

 


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