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Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 9 : Credit Control and Debt Collection

97. Contents of policy

 

 

1) A credit control and debt collection policy must provide for-
a) credit control procedures and mechanisms;
b) debt collection procedures and mechanisms;
c) provision for indigent debtors that is consistent with its rates and tariff policies and any national policy on indigents;
d) realistic targets consistent with-
i) general recognised accounting practices and collection ratios; and
ii) the estimates of income set in the budget less an acceptable provision for bad debts;
e) interest on arrears, where appropriate;
f) extensions of time for payment of accounts;
g) termination of services or the restriction of the provision of services when payments are in arrears;
h) matters relating to unauthorised consumption of services, theft and damages; and
i) any other matters that may be prescribed by regulation in terms of section 104.

 

2) A credit control and debt collection policy may differentiate between different categories of ratepayers, users of services, debtors, taxes, services, service standards and other matters as long as the differentiation does not amount to unfair discrimination.