Keely Goodall25 July 2024 | 8:19

CoCT takes prepaid electricity units to settle debt: ‘Creditors can't take the law into their hands!’

The City of Cape Town is under fire for its questionable strategy to collect municipal debt via prepaid electricity purchases.

CoCT takes prepaid electricity units to settle debt: ‘Creditors can't take the law into their hands!’

Picture: Pexels

Lester Kiewit speaks with Brett Herron, Member of Parliament and GOOD Party Secretary General.

Listen below.

The City of Cape Town’s Credit Control and Debt Collection Policy allows them to recover any unpaid debts for property rates and service via your prepaid electricity purchases.

This strategy has come under ethical and legal scrutiny as it 'bypasses residents' ability to dispute debts'.

ALSO READ:

Did you know? City of Cape Town recovers debt via prepaid electricity purchases

Have old municipal debt? You may qualify for Cape Town debt write-off incentive

It could also impact a person’s access to basic services, especially in low-income households.

A renter with prepaid electricity could face the consequences of their landlord not paying rates.

The GOOD party is slamming the policy.

“There is no law that allows any creditor to take the law into their own hands and unilaterally access your funding.”
- Brett Herron, MP - GOOD

Scroll up to the audio player to listen to the interview.