Stellenbosch University law clinic goes after online loan companies
Stellenbosch University law clinic has filed papers in the Western Cape High Court in a proposed class-action lawsuit against more than a dozen online loan companies.
Senior prosecutor Stephan van der Merwe says the companies have misled consumers into entering into agreements and then launched a "barrage of threats and harassment" against them when they complained or didn't pay.
Van der Merve explains the merits of their affidavits.
There are the allegations that thousands of consumers have been misled by going into websites that are specifically geared in such a way as to create an impression that they are there to give people loans or to assist them with loan-finding services.Stephan van der Merwe, Senior prosecutor - Stellenbosch University Law Clinic
They would use terminology like click this link to apply and what people find is that after they entered their details, amounts are debited from their bank accounts every month.Stephan van der Merwe, Senior prosecutor - Stellenbosch University Law Clinic
Listen to the full interview below...
Nthabeleng Likotsi says one of the conditions of being granted a licence is to appoint auditors and a board, which they have so far done, and that they have been granted authorisation to establish the bank.Read More