RAF upset by illegal scheme benefiting law firms than claimants

‘It is imperative that these issues are addressed’

The Road Accident Fund (RAF) has warned claimants against unscrupulous attorneys who lend them money for groceries and transport with exorbitant interests while their claims are still to be finalised. 

The fund said it has received complaints about attorneys who pay claimants they represent amounts that are significantly lower than the amounts paid to them by the Fund.

“This is an illegal scheme that benefits the law firms rather than the claimant. The scheme includes borrowing monies to cover their clients’ living expenses such as buying groceries and paying for transport while the claim is being finalised, then claiming back the money with exorbitant interest from the claimant’s RAF compensation,” said RAF Chief Executive Officer, Collins Letsoalo.

He said while SA has exceptionally high levels of inequality, desperate road crash survivors and their families are often lured into these illegal schemes, then often coerced by attorneys into signing agreements that prevent them from questioning their RAF pay-out amounts.

“In Mpumalanga, law firms are forcing their represented claimants to apply for their monies to be paid in instalments. Claimants across the country narrate stories of not hearing from their attorneys, being forced to sign documents that are not explained to them, are not informed about the undertaking that they may use for medical needs while waiting for compensation, and/or not having access to their funds for about five years after compensation has been paid,” said Letsoalo. 

This is an illegal scheme that benefits the law firms rather than the claimant. The scheme includes borrowing monies to cover their clients’ living expenses such as buying groceries and paying for transport while the claim is being finalised, then claiming back the money with exorbitant interest from the claimant’s RAF compensation,”RAF Chief Executive Officer, Collins Letsoalo

Last month the fund reported Spruyt Incorporated Attorneys to the Legal Practice Council (LPC) and claimed to have assisted several claimants to lay charges against the law firm with the police . 

RAF accused the law firm of paying its client R10,400 from the R241,000 that the fund paid to the lawyers for the claim.

“We urge claimants who have been subjected to such unethical practices to contact the fund immediately. The fund’s contact centre capacity was increased last year to deliver more transparent and fair services to the claimants. It is imperative that these issues are addressed, and that the integrity of the claims process be upheld.”

The fund encourages all claimants to contact the RAF’s Contact Centre for more information about the claim process, the status quo of their claims and the amounts paid to their attorneys on 087 820 1 111.

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