South Africa’s largest banks could be facing a R60 billion lawsuit relating to sales of repossessed houses.
Advocate Douglas Shaw, who has filed the case at the Constitutional Court says they want Parliament to:
- fix the law
- Stop all sales and executions until new law is in place
- have the banks compensate all the people that the banks have done this to
He says about 100 000 homes have been repossessed by banks and sold in execution since 1994. The banks sell properties about 5 times more than other countries do and in some cases for only 50% of market value.
They sometimes sell people's properties for a R100.— Advocate Douglas Shaw, legal expert
We are asking that they make it legal to use an estate agent because the agent will sell it for the market value.— Advocate Douglas Shaw, legal expert
Nedbank, Absa, FirstRand Bank and Standard Bank are cited as respondents in the case.
To hear more of this interview, listen below:
This article first appeared on CapeTalk : Claims of bank rip off, selling repossessed houses below market value