Some of the largest banks in the country are finally set to face legal action in February 2026 when a R60 billion class action lawsuit against them goes to court.
Image: Independent Media / Ron AI
Some of the largest banks in the country are finally set to face legal action in February 2026 when a R60 billion class action lawsuit against them goes to court.
Hundreds of former homeowners allege their properties were unlawfully repossessed and sold below market value. The case, filed in 2017, is set to go to court in February 2026.
Some homeowners reportedly had their homes auctioned for as little as 10% of their market value, resulting in homelessness and destitution.
The case names the four largest banks in the country Absa, Nedbank, Standard Bank, and FirstRand, as well as the National Credit Regulator, the Minister of Justice and Constitutional Development Mmamoloko Kubayi, and the South African Human Rights Commission.
Before the case can proceed, the court must determine whether the group of plaintiffs qualifies for class action status, which would allow them to sue collectively.
Once the class action is certified, it is hoped that things will run much faster and that the banks will then pay the hundreds of claimants who are now in dire financial need after losing their homes.
“No one thinks what they have been doing - in some cases, selling homes for as little as R100 - is okay. They should pay these people back,” Advocate Douglas Shaw said earlier this year.
Last year the Economic Freedom Fighters (EFF) led by Julius Malema also endorsed the “long overdue” class action lawsuit against banks for their “predatory and exploitative practices” which the party says has left hundreds of poor, primarily black South Africans homeless and destitute
“The class members argue that the bank’s sales in execution were not only unnecessary in many cases but also represented a grave violation of their rights, as these properties were their primary residences and were sold at far below market value, destroying their savings and security," the party said.
As previously reported that the banks are challenging the case and say they have done nothing wrong.