Stellenbosch University’s Law Clinic is to launch a class action suit against Lifestyle Direct Group International, its affiliate websites – including Loan Locator, Loan Choice, Loan Picker and Loan Quest – and its collection firm, Lifestyle Legal, on behalf of the thousands of SA loan seekers who were allegedly duped by those sites.

A TimesLIVE report says customers thought they were applying for loans, but the terms and conditions – hidden behind clicks – committed them to a 12-month ‘service mandate agreement’ for phone advice they neither wanted nor needed.

The Law Clinic alleges that Lifestyle Legal’s conduct in connection with their demands for and/or collection of payment is unconscionable in terms of the Consumer Protection Act, or unlawful under common law.

The law clinic is seeking an interdict ordering Lifestyle Direct to shut down the websites in question and restrain them from debiting bank accounts and ‘threatening consumers who have fallen prey to this scam’.

‘Ultimately, the applicants also request restoration of monies illegally debited and compensation for resulting losses,’ the university said.

The application – filed in the Western Cape High Court on behalf of eight clients, representing hundreds of others who have complained on social media – is expected to be heard at the end of November.

Full TimesLIVE report