Sameera Casmod | sameerac@radioislam.co.za
02 August 2023 | 09:46am SAST
2 min read

Picture: Stellenbosch University Law Clinic

In an interview on Radio Islam International this morning, Odwa Nwemba, an attorney from the Stellenbosch Law Clinic, shed light on the groundbreaking class action trial that has been given the green light to proceed. The case involves the alleged defrauding of thousands of consumers by Lifestyle Direct Group International and 13 other related websites between 2015 and 2019.

This class action will be the first of its kind to be filed by a South African university law clinic.

The law clinic, known for its commitment to providing legal aid to those in need, embarked on this class action in pursuit of collective justice for the affected consumers. The consumers were lured into believing they were applying for loan services on websites such as Loan Hub, only to find themselves unknowingly entering a 12-month subscription for legal advice services. The consumers were charged between R399,00 and R429,00 for these hidden legal costs, with regular deductions of R99,00 from their bank accounts.

With the certification of the class action in 2021, the law clinic now represents the interests of all affected consumers, who do not need to individually opt into the class. This approach allows for an efficient and coordinated legal process, ensuring a fair and comprehensive resolution to the case.

“It was certified in 2021. What that means is basically is that the respondents now have duties that they have towards the consumers that they duped… So all the people that they duped into entering this legal service agreement, they have to notify them that the class has been certified,” Nwemba explained.

As the case proceeds, the law clinic will issue summonses to begin the action formally. The court process is expected to take a few more months, possibly leading to a trial where testimonies will be heard, and justice will be sought for the victims of this alleged fraudulent scheme.

The estimated total loss incurred by consumers through this deceptive scheme amounts to close to half a billion rand, emphasizing the scale and gravity of the situation.

Stellenbosch University, through its Law Clinic, has taken on the responsibility of representing these victims, underlining their commitment to access to justice and safeguarding the interests of those who might otherwise be unable to seek legal recourse.

This class action trial marks a significant milestone in the fight for social justice, setting an important precedent for future cases of this nature.

As the case progresses, the law clinic will keep the public informed through their website, Facebook page, and notices on the respondents’ websites.

Listen to the full interview on Sabaahul Muslim with Muallima Annisa Essack here.