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Buffalo City Metro is offering ratepayers a debt incentive programme which could see half of their municipal debt being written off.
Spokesperson, Samkelo Ngwenya, described the incentive scheme as a ‘bonanza’ for residents.
He said the scheme offers BCM customers the opportunity to have 50% of their municipal debt written off if they up their accounts.
“Buffalo City is introducing a customer bonanza in the form of a debt incentive scheme which will give consumers an opportunity to settle their debts with three amazing options that give out huge discounts.
“This is part of the Metro’s newly approved credit control policy which was approved by Council last month to assist the Metro in its revenue management services,” Ngwenya said.
He said the BCM Council had also passed a new credit control and debt relief bylaw which he said would resolve some of the challenges posed by the previous Bylaws particularly on the recovery of those in arrears.
The Debt Incentive Scheme comprises three options which are as follows:
Option 1 of the debt incentive required the customer to settle the current account, 30-day and 60-day balance, plus 50% of the arrears balance from 90 days and older; to receive a 50% discount immediate write-off on the arrears balance from 90 days and older.
Option 2 of the debt incentive scheme required the customer to pay the current debt and to enter into an arrangement with the municipality for the debt from 30 days to 5 years. Once this arrangement has been honoured, the debt older than 5 years will be written off.
Option 3 also known as the rand to rand of the debt incentive required the customer to pay the current account plus the debt in 30- days and 60- days and then qualify for a 60/40 discount. This means that for the remainder of the balance, the customer will pay 40% of their debt and the Municipality will qualify them for a write-off 60% of their debt in instalment arrangements.
“The Metro is urging consumers to visit our revenue management offices across the Metro for more details on this amazing offer.
“Last month, the Metro Council resolved to write off consumers debt worth over R240 million in a bid to bring relief to communities,” Ngwenya said.
