Rundu to resume monthly interest charge
Redforce contract terminated
Rundu residents who are in arrears on their municipal bills have been urged to pay up, or risk being charged interest while their services are disconnected.
In a recent notice to residents, the Rundu town council announced that it will resume charging interest on defaulting accounts next month.
It also informed residents of the termination of a contract with debt-collection company Redforce, adding that those in arrears risk the suspension of municipal services.
“Council will commence with charging interest on accounts that are in arrears effective 1 July. We are therefore encouraging all inhabitants of Rundu whose accounts are in arrears to visit our offices for payment arrangements to avoid suspension of municipal services, as well as to avoid the monthly interest charges.”
Prior to Redforce’s appointment, the town council charged defaulters monthly.
However, during the debt collector’s tenure, defaulters were charged a 12% collection fee on top of the owed amount.
Court case
Redforce’s appointment in 2020 was necessitated by residents who for years refused to pay for municipal services, council said.
During that time, the Rundu town council lacked funds and could not pay NamWater, which resulted in residents going without water for up to four days.
Despite having terminated the contract with Redforce, the debt-collection company is demanding over N$9 million from the local authority.
In court papers, Redforce argued that the amount equates to revenue it would have made if it continued to operate in the riverside town.
Council has since indicated that it plans to oppose the matter.
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It also informed residents of the termination of a contract with debt-collection company Redforce, adding that those in arrears risk the suspension of municipal services.
“Council will commence with charging interest on accounts that are in arrears effective 1 July. We are therefore encouraging all inhabitants of Rundu whose accounts are in arrears to visit our offices for payment arrangements to avoid suspension of municipal services, as well as to avoid the monthly interest charges.”
Prior to Redforce’s appointment, the town council charged defaulters monthly.
However, during the debt collector’s tenure, defaulters were charged a 12% collection fee on top of the owed amount.
Court case
Redforce’s appointment in 2020 was necessitated by residents who for years refused to pay for municipal services, council said.
During that time, the Rundu town council lacked funds and could not pay NamWater, which resulted in residents going without water for up to four days.
Despite having terminated the contract with Redforce, the debt-collection company is demanding over N$9 million from the local authority.
In court papers, Redforce argued that the amount equates to revenue it would have made if it continued to operate in the riverside town.
Council has since indicated that it plans to oppose the matter.
[email protected]
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