Banks oppose ‘unjust’ sale of homes claim
Banks have opposed an application by hundreds of aggrieved customers who have filed an application in the Gauteng High Court seeking certification of a R60bn class action, claiming their homes were unjustly sold in execution for as little as 10% of their market value.
The Mercury notes more than 200 bank customers – including the Lungelo Lethu Human Rights Foundation – filed papers requesting that the court certify them as a class to sue the banks for damages.
However, Nedbank said in a statement that it ‘denies any wrongdoing as alleged and is opposing the application’.
‘It is worth noting that a similar action was previously instituted and dismissed by the Constitutional Court in 2017. Nedbank would like to confirm that the reserve price for sales in execution, being the minimum price at which the property can be auctioned for, is currently determined by the courts,’ it said.
‘We regard sales in execution as a last resort. Our processes have and will always comply with applicable laws.’
A spokesperson for Standard Bank said it had also opposed the application. ‘Given that same is lis pendens, we cannot comment at this stage,’ he said.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
