Class action case against fake loan debit order scammers

Bradley Prior

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Class action case against fake loan debit order scammers

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.
duped-and-desperate-loan-seekers-bring-class-action-against-online-scammers
 

rvZA

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Good luck getting a single cent back from these scammers.

Rather find legal recourse to prevent any bank from ever loading another debit order on any account in South Africa, unless a representative of the business and the client of the bank, comes in person together to the same bank, at the same time, and sign a debit order in person. Debit orders should be made an extremely difficult and expensive course of action. Those who really want a debit order will do it.
 

Geoff.D

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It does matter. If they are stopped at least some will be spared the pain and losses.
 

rvZA

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It does matter. If they are stopped at least some will be spared the pain and losses.

No need to stop them...

he said Malander had put up an affidavit stating that they had been “exited from the National Payment System” and the websites had been decommissioned and the companies had not traded since April 2020.

They already ran, likely because of many cases of fraud reported to SAPS. But, they will come back under new names, new forms and new sites.

The underlying problem here, as before is the SA debit order system which needs to be scrutinized and killed if needed.
 

Cosmik Debris

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The underlying problem here, as before is the SA debit order system which needs to be scrutinized and killed if needed.

Correct. Banks want two factor authentication to protect themselves from client claims but are quite happy to accept debit orders as they make an unethical and tidy little sum from bounced debit orders.
 

Mekon

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No need to stop them...



They already ran, likely because of many cases of fraud reported to SAPS. But, they will come back under new names, new forms and new sites.

The underlying problem here, as before is the SA debit order system which needs to be scrutinized and killed if needed.
SA banks are unwilling to make it harder and are happy with the way things are now. AFAIC they are enabling these scamster oxygen thieves.
 

Okty

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As said above, wish banks allowed you to authorise any debit order created against your account, as well as being able to ”freeze” ones that slipped trough or has gone rogue.
 

rvZA

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SA banks are unwilling to make it harder and are happy with the way things are now. AFAIC they are enabling these scamster oxygen thieves.

Been saying this for ages. Banks are benefitting from these debit orders they run, as they charge admin fees per debit order and even bigger fees to clients if there are not sufficient money in their accounts to meet debit orders. Debit orders are a multi billion Rand industry for the banks and they need them to run, whether by businesses or criminals - all the same to the banks.

They should fight the current systems.
 

rvZA

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had to recently approve all my current debit orders ....via Capitec's Debicheck facility..... https://debicheck.co.za/

Lucky you. Debit orders still nilly willy being applied to FNB accounts. Companies like Telkom and co do not fall under these things and it does not apply to them either.

Debit orders should be scrapped in total or made extemely difficult to implement on any account.
 

rvZA

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As said above, wish banks allowed you to authorise any debit order created against your account, as well as being able to ”freeze” ones that slipped trough or has gone rogue.

They won't. They will lose billions in income. They do have stupid things like debit orders under R200 which can be cancelled online. Above R200 you have to visit a branch. They charge fees to stop debit orders above R200 but cannot stop future debit orders. Debichecks they cannot stop at all, even if the client never approved it. This is my experience with FNB.

They will make it difficult to stop a debit order, but allow anyone without issues to load illegal debit orders. South African banks are just as criminal when it comes to debit orders as the syndicates are. They are all working together in defrauding the bank clients.
 

rvZA

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I would love the day when some law firm could start a class action against banks for allowing unauthorized debit orders on clients accounts, and not protecting their money entrusted to them, including debichecks, and hold the banks responsible for the losses and refunding clients, not the criminals loading the fraudulent debit orders. This will be the day when real justice is served.
 

Swa

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They won't. They will lose billions in income. They do have stupid things like debit orders under R200 which can be cancelled online. Above R200 you have to visit a branch. They charge fees to stop debit orders above R200 but cannot stop future debit orders. Debichecks they cannot stop at all, even if the client never approved it. This is my experience with FNB.

They will make it difficult to stop a debit order, but allow anyone without issues to load illegal debit orders. South African banks are just as criminal when it comes to debit orders as the syndicates are. They are all working together in defrauding the bank clients.
That is nonsense. A Debicheck order can be stopped if they want to. This is like the banks telling your they can't reverse an EFT but just watch your account being frozen if a big institution "mistakenly" deposits money into your account while it's investigated and they return the money. Just don't walk out of the bank with no as the answer.
 

rvZA

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By the way, I see today FNB has some debit order functionality in place where any company can load a debit order on your account. These debit orders do not show up on your FNB profile. You are not notified of them, they can't be blocked or stopped. They just continue to run once a day and if you do not have funds in your account, FNB simply charges you R115 a day for the bounced debit order.

I see Telkom is one of the companies making use of this facility.

Called FNB and they told me these debit order cannot be blocked or stopped on accounts. FNB themselves can't even see these debit order until they run on the account. The only recourse you have is to reverse them when they actually take money. There is a fee you will need to pay too.

Not sure what scam FNB has implemented now, but people are going to suffer a lot of losses.

I think we need courts to outlaw the debit order system. This is nothing but criminal activities and harmful business practices.
 
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