Think before you sign: Joburg residents cautioned over debt acknowledgements

When a red notice appears on your municipal statement, panic is often the first reaction.

For many Johannesburg homeowners and small business owners, that panic is now colliding with the City’s latest debt relief drive and legal experts say some residents may be signing away more than they realise.

Attorneys and civic activists are urging Joburg ratepayers to pause before putting pen to paper on so-called “acknowledgement of debt” forms, particularly when the charges on their accounts are disputed.

Because once you sign, it may not be as simple as changing your mind.

The relief programme and the fine print

On 1 November 2025, the City of Johannesburg launched phase four of its debt relief programme, a 12-month intervention aimed at helping households, pensioners, small businesses and some non-profits settle municipal arrears.

On paper, the offer sounds generous:

• Partial or full write-offs of interest and penalties

• Payment arrangements for outstanding balances

• Up to 100% write-offs for qualifying pensioners and social package beneficiaries

• 50% write-offs for most residential customers, with the remainder payable over 12 to 24 months

• Relief options for small businesses

• A loyalty reward scheme for consistent payers

For residents drowning in backdated water or electricity bills, it’s a lifeline.

But legal practitioners say the relief comes with conditions and sometimes pressure.

“Sign here”, under pressure

Across Johannesburg, residents report being told that in order to prevent service disconnections, legal action or delays in obtaining clearance certificates, they must either settle the full outstanding balance or sign an acknowledgement of debt.

In South African law, that document is not casual paperwork. It is a formal admission that you owe the amount stated.

And that can have serious consequences.

Under the Prescription Act, ordinary municipal service charges like water and electricity typically prescribe after three years unless that prescription is interrupted. Making a payment, signing an acknowledgement of debt, or facing legal action can reset that clock.

In other words, signing could revive debt that might otherwise have been legally unenforceable.

Disputes don’t disappear just because you sign

Johannesburg has a long and complicated history with billing disputes. Over the past decade, residents have frequently complained about incorrect meter readings, inflated consumption charges and historic arrears that suddenly appear without explanation.

Legally, when a billing dispute is raised, the municipality carries the burden of proving the accuracy of its meters and statements.

But according to Schindlers Attorneys, signing an acknowledgement of debt can complicate that process.

Attorney Chantelle Gladwin has cautioned consumers to ensure payments are not allocated to disputed items.

“If payment is made of any part of the debt, this is taken as an admission of indebtedness,” she has warned, adding that disputes must be clearly recorded in writing and the municipality informed which charges are contested.

The key point: a debt relief programme is a policy intervention. It does not automatically determine whether a debt is legally enforceable.

Civic concern: “People sign to keep the lights on”

Civic activist Mike Lingwood says the real-world problem is pressure.

“People sign acknowledgements of debt to stop disconnection or restore services,” he has said. “Later, they discover that they’ve limited their ability to challenge charges they believe are wrong.”

For many Joburg residents, the fear of losing electricity or water outweighs the legal nuance. In a city already dealing with economic strain and high unemployment, few households can afford extended service disruptions while arguing technical billing disputes.

On community WhatsApp groups and Facebook pages, residents have been sharing stories of shock balances and unclear breakdowns of charges. Some say they feel cornered forced to choose between immediate service stability and long-term legal rights.

The city’s response

City spokesperson Nthatisi Modingoane has confirmed that prescribed debt is administered in accordance with the Prescription Act and that prescription may indeed be interrupted by payment, acknowledgement of debt or legal action.

The City maintains that prescribed debt should not be treated as a reward for non-payment and should not be confused with its debt relief initiative, which is aimed at assisting customers in financial distress.

Residents are also expected to continue paying current charges while disputes or applications are processed.

Questions every resident should ask

Before applying for relief or signing any acknowledgement of debt, legal practitioners recommend seeking clarity on:

• How disputed charges are treated during the relief process

• Whether signing an acknowledgement of debt is mandatory for access to relief

• How the City distinguishes between enforceable debt, disputed charges and potentially prescribed amounts

• Whether revised statements clearly reflect reversals, write-offs and remaining balances

These may sound like technical questions, but in practice, they can determine whether a resident is entering a manageable repayment plan or unintentionally accepting liability for contested amounts.

A broader trust issue

At its core, this is about trust.

Johannesburg’s debt relief programme could genuinely help thousands of struggling households. But its success depends on transparency and fairness in implementation.

For residents, the message from legal experts is simple: relief should not come at the cost of your legal rights.

In a city where municipal billing has long been a source of frustration, signing under pressure may solve today’s crisis, but create tomorrow’s problem.

Sometimes, the most powerful word in a municipal office is not “yes.”

It’s “wait.”

{Source: The Citizen}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com