Inside the Dirty Tricks of TV Licence Debt Collectors in South Africa

Inside the Dirty Tricks of TV Licence Debt Collectors in South Africa

South Africans are once again receiving dodgy SMS messages from SABC’s TV licence debt collectors. The messages, filled with vague threats and “special settlement deals”, have left many confused about their rights.

Consumer watchdogs say these tactics are not new and that most threats have little to no legal weight.

SMS threats and “trace alerts”

Recent messages sent to TV licence holders in arrears warn about so-called “trace alerts” and even offer discounts of over 50% if payment is made immediately. One SMS read:

• “Avoid a Trace Alert on your name for your TV licence… Pay now.”

• “GREAT opportunity! Pay ONLY R3,930 on your TV Lic Bal of R8,125. Valid today only.”

But these warnings are misleading. A trace alert is not the same as blacklisting, and it won’t damage your credit score. It only signals to credit providers when your contact information changes.

Outa: Don’t be intimidated

The Organisation Undoing Tax Abuse (Outa) has previously warned South Africans not to be intimidated. Outa CEO Wayne Duvenage said the SABC is highly unlikely to prosecute non-payers.

• The maximum penalty in law is a R500 fine or six months in prison.

• Outa says it knows of no case where anyone was prosecuted.

• The cost of legal action would far outweigh what SABC recovers.

Duvenage compared the situation to e-tolls: “When the cost to collect is too high and the consequences of non-payment are almost zero, payment rates will collapse.”

Who benefits from the collections?

Questions also remain about where the money goes. Years ago, a Gupta-linked company, Lornavision, pocketed millions after being given full rights to TV licence debt collection. That contract was later cancelled, but today’s contracts with debt collectors remain secret.

When asked, the SABC only said that “contractual agreements are confidential”, while insisting that all recovered payments land directly in its bank account.

Why the SABC still uses debt collectors

SABC spokesperson Mmoni Ngubane defended the practice, saying external agencies are needed to handle the large volume of unpaid licences.

“These campaigns follow standard industry practices and are not meant to mislead,” she said.

But South Africans on social media are not buying it. Many see the messages as scare tactics designed to squeeze money out of struggling households.

Bigger picture: the TV licence debate

The uproar comes as Parliament reviews the SABC Bill, which could replace the current TV licence model with a new funding system. The broadcaster has long argued that the outdated licence fee is not sustainable.

Until then, South Africans will keep getting SMS threats from debt collectors but experts say you should know your rights before reacting.

{Source: MyBroadband}

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