The Democratic Alliance (DA) in Msunduzi Local Municipality has written to the Acting Municipal Manager, Nelisiwe Ngcobo, to demand answers and urgent action over allegations of residents being allegedly unlawfully charged when paying for their bills at the municipality (view bill here).
This as a report by the by the municipality’s Finance and Revenue unit has revealed that the municipality has been unlawfully charging residents that pay using their bank cards at the municipality an extra fee, that goes to the municipality, outside of their respective banks, transaction fee.
The report was requested by the DA, after we had received numerous complaints from affected residents.
Residents that are paying for bills over R3000, are allegedly the ones that are being charged this extra fee.
According to residents, they would pay monies for their outstanding bill using their bank card, the municipality would not charge this fee instantly but add it on the next bill.
This practice is considered discriminatory and violates the Consumer Protection Act (CPA) and the Payment Association of South Africa (PASA) rules.
The DA has approached different banking institutions to enquire about this irregular act. In which we have received advice that residents can take legal action against the municipality.
Affected customers are encouraged to lodge formal complaints to their respective banks if refunds on these additional costs incur.
We are calling for the Acting Municipal Manager, to investigate, share publicly the report and reimburse customers that have been affected. The DA will also be supporting residents that will explore legal action against the municipality.
We have urged that all consumers affected by these surcharges must be reimbursed immediately.
The DA has, and will, continue to expose maladministration and corruption that directly robs the people of this City.
We need a government with integrity and acts in the best interests of its residents. Not to steal hard earned money abusively through corruption.
The DA will continue to work hard to save this City and protect our communities.