Where can I complain about an illegal loan?
I have been sent a court summons from a company called Loan Choice stating that I requested a loan online, which I didn’t do. Now the company wants to take me to court. What can I do?
CITY PRESS REPLIES:
According to the credit ombud, this appears to be a loan scam. These products are not actually a credit agreement, but a misleading product that is advertised online.
“Consumers agree to services and fees, when all they think they are doing is investigating different credit options,” says the ombud.
“They never take up the credit, or they don’t qualify for the credit they want, and then the consumer thinks that is the end of the story.
“However, they already agreed to pay certain fixed fees for other services, such as legal services, without realising it.”
As the company is not a registered loan provider and this is really an advertising scam, this needs to be reported to the National Consumer Commission.
The ombud adds that Asanda will need to defend the matter, failing which, a judgment will be granted.
Referring the matter to any regulator or other body will take time, and unless there is an agreement to hold the matter over in writing, it is dangerous to do nothing while waiting for the commission or any other body to deal with the complaint.