Courts & Legal
Gauteng High Court to rule on R60bn class action over bank repossessions
For hundreds of South Africans who say they lost their homes unfairly, the next few weeks could be decisive. The Gauteng High Court in Johannesburg is preparing to hear a long-running application that could open the door to a massive class action lawsuit against some of the country’s biggest banks. At the centre of the case is a staggering R60 billion damages claim linked to how properties were sold in execution.
The court is expected to deal with the certification of the class action later this month, following a firm procedural ruling that has finally drawn a line under years of paperwork and legal back-and-forth.
Why this case matters to homeowners
At its heart, the case speaks to a fear many South Africans quietly carry. Falling behind on a bond can feel like standing on the edge of a cliff, especially in a country where unemployment, rising interest rates, and household debt continue to squeeze families. For those involved in this case, that fear turned into reality when their homes were repossessed and sold, allegedly at prices far below market value.
The applicants argue that the banks did not always treat property sales as a last resort. They claim this approach left former homeowners with deep financial scars, including lingering debts even after their properties were sold.
A five-year battle to get heard
The application to certify the class action was first launched in February 2020. Since then, the case has grown increasingly complex, involving four major banks along with financial institutions and public bodies. Over the years, the applicants repeatedly tried to submit further affidavits and expert opinions to strengthen their case.
That approach has now been shut down. In a recent interlocutory judgment, the court ruled that no further affidavits may be filed. Judge Leonie Windell made it clear that the matter had dragged on for more than five years and that the ongoing delays were affecting the administration of justice and other litigants waiting their turn.
In simple terms, the paperwork phase is over. The court wants to move on.
The four proposed classes explained
The applicants are asking the court to recognise four distinct groups within the proposed class action.
The first is the main class, made up of people whose homes were sold in execution for less than 90 percent of their alleged market value.
The second group includes those who argue that selling their property was not a last resort, even though they fall within the main class.
The third class focuses on short-term debt. This includes people who still owe money to banks or who previously settled such debt after their properties were sold for less than both their market value and the amount owed.
The fourth group consists of homeowners who claim they were overcharged for legal or related fees during enforcement proceedings linked to their mortgage bonds.
On what grounds are the banks being challenged?
The damage claims rest on three main legal pillars. One is delict, with the applicants alleging that the banks acted wrongfully and are at fault for how the properties were sold. Another is contractual, with claims that certain charges and fees were not authorised under the original loan agreements. The third argument raises constitutional concerns, suggesting that some sales in execution were conducted in a manner that infringed on constitutional protections.
The banks have consistently denied any wrongdoing. They have stated that they intend to oppose the class action and maintain that they act in the best interests of their clients.
Public reaction and the bigger picture
Online, the case has struck a nerve. Discussions around repossessions often spark strong reactions, especially from South Africans who feel the financial system favours institutions over individuals. Many see the case as a test of accountability in the banking sector, while others warn that a successful class action could have far-reaching consequences for lending practices.
Either way, the upcoming hearing is being closely watched. For some, it represents a chance for long-delayed justice. For others, it raises questions about how the balance between financial risk and human cost should be struck.
What happens next
The certification application is set to be argued in court later this month, with the applicants’ legal team indicating they are ready to proceed on February 24. The court’s decision will determine whether this case can move forward as a class action or whether it ends before the merits are ever fully tested.
For now, all eyes are on the Gauteng High Court and on a ruling that could reshape how property repossessions are challenged in South Africa.
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Source: IOL
Featured Image: News24
