File
The Road Accident Fund is appealing to the public who may have been subjected to unethical practices by lawyers to contact the RAF immediately.
CEO, Collins Letsoalo, said on Wednesday that they have increased capacity at the contact centre to deliver a more transparent and fair service to claimants, some of whom have been victims of unscrupulous lawyers.
He said the RAF has received complaints about attorneys who pay claimants amounts that are significantly lower than that paid to them by the Fund using illegal methods that benefit law firms rather than clients.
“The scheme includes borrowing monies to cover 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,” Letsoalo said.
He said the RAF recently referred a Mpumalanga law firm to Legal Practice Council after a claimant who was awarded R241 000, received just under R11 000 from the law firm.
The fees were reportedly justified due to high administrative cost.
However, Letsoalo said the Contingency Fees Act limits the total fee to a maximum of R25% of the compensation.
He said in Mpumalanga, some law firms are forcing their represented claimants to apply for their monies to be paid in instalments.
“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,” Letsoalo said.
