Debt Relief Programme offers lifeline for indebted ratepayers
Indebted ratepayers to eThekwini Municipality have been given a lifeline by the reinstation of the Debt Payment Relief Programme, which kicked off at the start of December and is set to close at the end of February.
THE City has released a statement reminding customers that the eThekwini Electricity Department has reinstated the Debt Relief Programme, offering a lifeline for indebted ratepayers and aiding in easing the financial burden of customers.
The municipality’s full council approved a report that grants permission to reinstate debt relief for ratepayers whose accounts were in arrears in the latter part of 2022. The new reprieve period kicked off on December 1 and ends in February 2023.
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The terms and conditions for the programme state that customers who are 90 days in arrears should sign a payment arrangement with a 5% down payment for residential and 10% for non-residential customers. The interest accumulated on the debt will be written off once the payment arrangement has been entered into, but Council warned that the interest will be reinstated if the customer defaults on the payment plan.
According to the eThekwini Municiaplity, the Debt Relief Programme allows customers to settle their outstanding debt with the reversal of interest accrued.
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“The Debt Relief Programme benefits customers whose debt is 90 days and older. The customer and the municipality will enter into a payment-plan agreement that does not exceed 36 months and is based on the customer’s affordability,” said the City.
The eThekwini Municipality said that a down payment of 5% for residential customers and 10% for business customers of the total debt is required to be paid upfront.
“The historical interest accumulated will be written off. No future interest will be raised on the debt until it is paid in full, provided the customer complies with the conditions of the agreement. If the arrangement is defaulted upon, interest will be reinstated. Further to the interest write-off, depending on the number of months the customer chooses, a percentage of capital write-off will be provided,” said the municipality.
Customers who are interested in benefitting from this programme can visit their nearest Sizakala Customer Service Centre.
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