Banks face R60bn class action over home repossession
Hundreds of people who had their homes repossessed – primarily due to missed bond payments – and then sold for a fraction of their true value are anxiously awaiting the start of a R60bn class action against major banks.
The Star reports many of these people had their homes auctioned off for as little as 10% of their market value, and have been homeless and destitute for over a decade while the banks recovered the debt.
The class action against banks such as Absa, Standard, FirstRand and Nedbank was filed in 2020 in the Gauteng High Court (Johannesburg).
However, the quest for justice began much earlier.
In 2017, the affected individuals sought damages from the banks by turning to the Constitutional Court. It, however, referred the matter to the High Court for a further hearing.
Now, they are seeking certification for the R60bn class action, which the banks are opposing, denying any wrongdoing.
Other respondents in the matter include the Human Rights Commission, the Rules Board and the Minister of Justice, although the applicants are mainly seeking relief from the banks.
The more than 200 applicants are now hoping that a meeting scheduled between their legal team and the banks, with the judge hearing the matter, will proceed this week.
The meeting is scheduled to happen virtually, during which all the parties concerned will pave the way for the certification application to get off the ground.
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.
