The EFF says it supports the “long overdue” R60-billion class action lawsuit against South Africa’s major banks, Absa, Standard Bank, FirstRand (FNB) and Nedbank.
In a media statement released on Friday, EFF national spokesperson Leigh-Ann Mathys gave details of the lawsuit. She said it involves more than 200 applicants whose homes were repossessed by major banks. These include Absa, Standard Bank, FirstRand, and Nedbank. The houses were repossessed after owners missed bond repayments.
Mathys said these repossessed homes were auctioned off for a fraction of their true
market value.
Unjustly sold repossessed properties far below market value
She said in 2020, a R60-billion class action lawsuit was filed against the banks in the Johannesburg High Court. The lawsuit was for unjustly selling properties far below market value. Also for failing to treat property sales as a last resort, and disregarding the livelihood.
“The EFF fully endorses the long-overdue R60-billion class action lawsuit against South Africa’s major banks for their predatory and exploitative practices. [These] have left hundreds of poor, primarily black South Africans homeless and destitute.
“This legal action exposes the deep-rooted systemic neglect and exploitation of the vulnerable. A reality the EFF has consistently highlighted in its fight for economic justice.
“This lawsuit involves more than 200 applicants whose homes were repossessed
by major banks. By Absa, Standard Bank, FirstRand, and Nedbank. This after missing bond
repayments. These repossessed homes were auctioned off for a fraction of their true
market value. With some homes sold for as little as 10% of what they were worth.
Leaving their owners homeless and still in debt to the banks. Some properties were even sold for as low as R100,” said Mathys.
Homeowners left destitute and still owing banks
“These practices were common before 2018 when the Gauteng High Court in Pretoria, amended the rules. This required reserve prices for properties sold in auction. But by then, many had already been affected.
“…Most of the applicants are poor and unable to recover their losses. They have been living in destitution for over a decade and now seek damages from the banks.
“This legal battle began in 2017, when the victims sought recourse from the Constitutional Court. However, the court referred the case back to the High Court for further hearings. In 2020, a R60-billion class action lawsuit was filed against the banks in the Gauteng High Court, Johannesburg. This was for unjustly selling properties far below market value, failing to treat property sales as a last resort. Also for disregarding the livelihood of the affected homeowners,” said Mathys.
She said this lawsuit highlights how “black homeowners are disproportionately
targeted”. They are losing their homes and properties when they encounter financial hardships. This while white individuals are given ample time and opportunity to make arrangements without forfeiting their assets.
Mathys said the EFF will continue to use parliament as a tool to push for a judicial investigation. For it to investigate alleged discriminatory practices in the South African banking sector.
Black homeowners disproportionately targeted
“Recent statistics show that out of 6 million home loan applications submitted by historically disadvantaged persons, less than half were approved. …While white applicants continue to receive loans valued exponentially higher.
“As stated in one of our seven cardinal pillars, we need the establishment of a state bank. This in order to break the stranglehold of private financial institutions. Particularly when it comes to home loans.
“A state bank would offer lower interest rates. This will make it easier for historically dispossessed and working-class people to access affordable home loans. They will escape the exploitative grip of commercial banks.
“By prioritising the needs of the people over profit, a state bank would provide fair, accessible credit. And it will ensure that homeownership is not a privilege for the few but a right for all South Africans.
“The EFF remains clear in its commitment to pursue a judicial investigation within parliament. And we will give our political support to this case until every victim receives the justice they rightfully deserve,” said Mathys.
The EFF must first pay back the money they stole from poor ‘gogo’s’ stokvel savings in VBS bank.
Poor blacks only matter when banks recover bad debt from defaulters … but not when the EFF rob INNOCENT blacks?
Or is it another ploy by the EFF to distort money from banks through harassment?
Just like the EFF did with VBS?
Using the ‘poor’ as smoke screen for their mafia type of distortion?
Absolutely
100%
Absolutely correct.EFF Everything For Free
Clearly speaking from a place of privilege.
Always the couch racists
I myself have only bad experience with banks. And if I had my way, I would recommend bank regulation into how it determines credit worthiness between blacks and white. And yes AJ Swart is responding from a privileged position. And yes EFF must pay the money it stole from VBS. But let not this theft blind you to the justified class action against banks. Most blacks where retrenched with impunity by white owned companies which led to their houses auctioned off by these banks.
I support EFF 100%
I had many home loans rejected. Banks need to make sure you can repay the loan and that the property is worth the value. Making a blanket statement about white vs black is wrong. How many ANC cronies purchased properties and even Zuma got home loans aporoved. The stats used is flawed and should include age groups vs areas vs property values etc.
Here we go again, after 30yrs of black privilege still crying foul play…the whites’the whites’the whites, do your homework before before puking absolute garbage all over the place!! Concentrate on getting the ex and current cadres and cronies stripped of all they own stolen looted while in positions they had no clue of what they are doing bar for criminal activity. Stealing a bread lands you in prison but not living the high life on everything stolen acquired via criminal means…imprison these scum bags.
What are you getting so het up about? The fact is 30 years after apartheid whites who are beneficiaries of apartheid are sitting with all the wealth they accrued under that disgusting regime. And yes, it is racism that whites are still given access to credit, etc and blacks not.
Poor EFF trying to make themselves relevant. They are also extornists with the Labour Desk. Check with Clicks, HMM and other small companies. They go to these companies and demand monthly payments, bakkies, etc and are now bringing a useless Class Action against the bank because they failed to steal the Reserve Bank. Poor supporters of EFF don’t know what their leaders are up to.
Can we have a transparent record,at least from 1994 exhibiting how banks mange bonds applications,especially on the following aspects:
1. No. of applications received and processed, that approved and declined;
2. No. of defaulters and subsequently no. of properties repossessed.
3. The information should include the interest charged.
4. It will be interesting if the statistics could indicate the applicants by race and gender and we know the confidentiality, which is why it will be okay to withhold names and other information that may be regarded as such.
I fully agree with you on this proposal lets see how this sector will oppose this it’s clear that every application from car finance, bond or credit aslong as it comes from a black client they all ask themselves abt risk nd recovery b4 thy can think of affordability but as 4 whites it’s the opposite the put a stamp of approval b4 thy check risk or affordability
The banks treat black and white people the same! I am a excample, Im white and Nedbank has done it to me and I am still suffering due to dept. So how am I now different because Im not black. Please EFF wake up!