August 5, 2021

Duped and desperate loan seekers bring class action against online scammers

Illustration: Lisa Nelson

  • The High Court has ruled that the Stellenbosch University Law Clinic can lead a class action against Lifestyle Direct Group International.
  • The law clinic says thousands of desperate people were scammed through websites into believing they were applying for much-needed cash loans but ended up with debit orders.
  • The individual claims are small amounts and the judge said class action litigation gave ordinary working people who cannot afford exorbitant litigation costs access to justice.

Stellenbosch University Law Clinic has been given judicial go-head to launch a class action against Lifestyle Direct Group International and its affiliated websites, in an attempt to claw back money it took from thousands of desperate loan seekers.

In a judgment handed down in the Western Cape High Court on Wednesday, Judge Patrick Gamble also gave authority for the class action to be on an “opt out” basis,…

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