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Interest rate hike impacts municipal account debt

 

Customers who are in arrears with their municipal account will see the interest on their debt escalate in line with the announcement last week by the Reserve Bank that the Repo Rate was being increased by 50 basis points.

Siphiwe Shabangu, the City's Director responsible for revenue management (including credit control), says the increase is in line with the City’s regulations.

"We have always adjusted the interest rate charged customers when the Reserve Bank has increased the Repo Rate. This announcement is made to comply with the National Credit Act that requires us to inform customers of the change in the interest charged on the debt," he says.

City customers who have debt on their municipal accounts will now be charged 13% interest.

"Obviously no-one likes to be charged interest and so we would like to encourage our customers to pay their accounts in full and on time every month. Payments can be easily made via any Internet banking site, and bank ATM or branch; at any SA Post Office or any EasyPay site (like Woolworths, Pick ' Pay, Shoprite Checkers, etc). And we have customer service centers located all around the City where payments can also be made in cash," Shabangu says.

In the event a customer is in a position where they are unable to pay in full or on time, they can visit any of the main customer service centres to make arrangements to pay it off, says Shabangu. "Essentially we allow customers to sign a legally-binding agreement to pay off their arrear debt while keeping current debt fully paid."

Queries about arrangements, payments or anything else related to a municipal account can be made by contacting Joburg Connect at (011) 375 5555 or emailing them at joburgconnect@joburg.org.za.

ENDS

Issued by:
Mandy Jean Woods
Acting Director
Customer Communications
Phone: 082 553 4211 (please send sms if urgent)