RAF issues warning against dodgy lawyers who swindle claimants
The lawyers are said to borrow claimants money to cover living expenses and transport while their claim is being processed, only to charge exorbitant interest from the RAF payout once it is received.
FILE: Road Accident Fund (RAF) CEO Collins Letsoalo. Pciture: Facebook/RoadAccidentFund
JOHANNESBURG - The Road Accident Fund (RAF) has issued a warning against dodgy lawyers who swindle claimants by giving them groceries and transport money, charging them exorbitant interest.
The fund has been subject to scrutiny in recent months for struggling to stay afloat with an unsustainable model as it is based on litigation.
READ: RAF says it's struggling to stay afloat, calls for proper allocation of state resources
However, RAF also said dubious lawyers were crippling the fund.
RAF said it's received complaints about attorneys who pay claimants they represent significantly lower amounts than paid by the fund, saying this is an illegal scheme that benefits law firms.
The lawyers would borrow claimants' money to cover living expenses and transport while their claim was being processed, only to charge exorbitant interest from the RAF payout once it was received.
The fund has also noticed a trend of law firms in Mpumalanga forcing their claimants to apply for their monies to be paid in instalments and forcing them to sign documents that are not explained to them.
RAF CEO Collins Letsoalo has urged victims of such schemes to report this to the fund immediately.