City residents reminded of debt write off opportunity

18 June 2021

The City of Cape Town recently approved the debt write off of approximately R4,1 billion for qualifying debtors as an incentive to encourage the culture of payment and to assist struggling debtors. Qualifying customers are reminded of this opportunity and encouraged to contact the City. The list of customer offices to visit are included below. This action was taken due to the continued impact of Covid-19 on lives and livelihoods and the much slower than expected economic recovery over the past year. Amid the resurgence of Covid-19, the City is acting to alleviate further hardship where at all possible.

‘This action, which involved an in-depth, legally vetted and well-deliberated process, is only possible because of the trust there is in the City and the resultant high payment ratio for rates and services, which is unparalleled in South Africa. This is helping to keep the City sustainable and means we are in a position to assist qualifying debtors out of humanitarian consideration. We thank the many loyal residents and businesses who continue to pay their accounts.

Qualifying customers may apply for the write-off of arrears debt older than three years provided they enter into a payment agreement with the City for the remainder of their debt. Registered pensioners, public benefit organisations and other entities will receive a once-off write-off.

This is over and above the R3,4 billion in rates and service relief to qualifying customers allocated in the new financial year.
 
‘It is hoped that debt-write off incentives will create a stronger culture of payment, while also helping our residents who have old City debt to sleep easier at night. A stronger culture of payment will make the City more resilient and sustainable going forward.
 
‘We could not do this without our loyal residents and without the support of those who are able to pay and continue to do so. Importantly, there is also assistance available to those who have been paying, but need help now due to the continued impact of Covid-19 on their finances. These cases continue to be considered on application to the City, on a case-by-case basis, via the Covid-19 relief initiatives. The City will continue to operate in a manner that is sustainable, that does not jeopardise service delivery and that sees to it that those who qualify for support are provided with relief.

‘Qualifying customers are reminded of this opportunity and encouraged to contact the City. They will be informed whether or not they qualify when they visit a customer interaction centre or contact the call centre with account enquiries,’ said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson. 

For more information about payment arrangement requirements

Visit: http://bit.ly/CCT-PaymentPlan or https://resource.capetown.gov.za/documentcentre/Documents/Procedures%2c%20guidelines%20and%20regulations/Qualifying%20debt%20to%20be%20written%20off_2021.pdf

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Published by:
City of Cape Town, Media Office