Imagine standing on the lawn of a home you poured your blood, sweat, and savings into, watching as it's repossessed by the bank. Now imagine discovering that the very same house, cornerstone of your life, has been sold by that bank for as little as R100. For some South African homeowners, this isn't a distant nightmare but a cold, harsh reality that has sparked a battle in the courts.
I was shocked when I read an article by the Cape Times on this. https://www.iol.co.za/capetimes/news/r60bn-class-action-against-banks-lauded-09c199ab-c297-4b67-97ea-480375cdbd5e
The indignity of this situation cannot be overstated. How does a house, often one’s single greatest asset and symbol of stability, end up being sold for a pittance? These are the questions at the heart of the R60 billion class action lawsuit against the country’s major banks. And they demand urgent answers—not just for the plaintiffs but for every South African homeowner fearful of the same fate. At the core of this scandal lies the practice of auctioning repossessed homes at devastatingly low prices, sometimes far below market value.
While banks argue that they are acting within legal limits, the financial repercussions for former homeowners are catastrophic. Many are left with lingering debt from unpaid loan balances, adding insult to the injury of losing their home. This class action, brought before the Gauteng High Court, Johannesburg, is a beacon of hope for hundreds of claimants now facing dire financial need. Advocate Douglas Shaw, who represents the homeowners, has been working tirelessly for more than four years to get the case certified. However, the journey has been riddled with hurdles.
Currently, the banks are challenging the structure of some affidavits filed by the claimants. Once this technical matter is resolved, Shaw plans to file the main certification application and await a court date. He has alleged that progress has been slow, partly due to delaying tactics employed by the banks and the fact that the presiding judge took six months of leave. Nevertheless, there is optimism that the class action could be certified by the end of the year, paving the way for faster progress and potential payouts.
For those caught in this storm, the issue transcends financial losses—it’s about justice and accountability. Banks hold a fiduciary responsibility, but selling some repossessed homes for R100 raises serious ethical concerns. Are vulnerable clients treated fairly, or are they mere entries on a balance sheet? Alternative solutions such as restructuring loans, voluntary sales, or payment holidays could preserve dignity and mitigate financial damage. Yet, these are not universally applied. The question remains: why?
As South Africans, we need to confront what this says about our systems. Are we prioritising profit over humanity? Are we satisfied with mechanisms that exploit the vulnerable for efficiency's sake?This case is more than a legal fight—it’s a societal reckoning. Homeownership represents dreams, stability, and family legacies. When those dreams are reduced to mere cents, the price paid by society far exceeds the monetary value. It’s time for banks, regulators, and policymakers to ensure this practice doesn’t persist. After all, our homes, and the humanity they represent, are worth far more than R100.
* Maleke is the editor of Personal Finance
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