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Municipalities – Word your service agreements with care! |
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by
LawDotNews
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Published
2010/02/03 12:00:00 AM
(Viewed
661
times) |
Municipalities, you need to react swiftly to a recent High Court case that has fired a warning shot across your bows - the effectiveness of your whole debt collection process is at stake.
If your municipal service agreements are incorrectly worded, the “NCA” (National Credit Act) will apply when you try to enforce payment for services supplied. If that happens, it will significantly complicate - and delay - your debt collection processes.
Note that rates claims are exempted from the NCA, and the same will apply to properly-formulated service agreements. The onus however is on you to prove such exemption, so take advice now on whether your agreements will pass muster.
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