Tshwane appoints debt collectors to recoup billions

News South Africa

Tebogo Msimanga |

The City of Tshwane appointed 34 debt collection agencies to recoup more than R12 billion it is owed by residential and business customers.

The panel of debt collection agencies was appointed with effect from Monday, 02 November 2020, on a three-year contract to collect the outstanding debt amounting to a total of R12,8 billion.

The City has attempted to recover the outstanding debt through other less drastic measures such as credit control actions, debt calling and via electronic reminders, but all these efforts were in vain, and the City was left with no option but to outsource the recovery process.

The City constantly sends alerts to its customers whose municipal accounts are in arrears to remind them of their debt before their accounts  reach 120 days  by  sending  them  SMSes,  invoices  per  email and  calls  from  the  Outbound  Call  centre.

Debtors have also been encouraged to take advantage of the City’s Incentive program to bring their accounts up to date.

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