Where can I com­plain about an il­le­gal loan?

CityPress - - Business -


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?


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.

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