Last chance to join the case if your house was sold for nothing.



Last chance to join the case if your house was sold for nothing.


If your house has been sold by the banks for substantially less than it was worth and/or not as a last resort, then you have less than a month to sign up for the potentially R60 billion case co ordinated by Adv Douglas J Shaw and Banking Law Advisor.

According to the papers, banks have unconstitutionally, negligently and sometimes with possibly even with criminal intent sold the houses of South African citizens for a small fraction of their value. Other countries, it is argued, manage to have a functional bond market without selling people’s houses for so little. South African banks, it is also alleged, are far more aggressive in selling their client’s homes than virtually everywhere else in the world

The applicants, of whom there are now almost 300 from all walks of South African life seek not only a change in the law to make sure these bad practices change but also that the banks pay back each person they have done this to in the last 20 years or at least each applicant in the case.  With many people losing hundreds of thousands of rands in such processes over the years or even millions, the banks may have to pay back a total of many billions to the applicants if the suit is successful.

This case was first brought on direct access to the constitutional court last year around August but the court decided later in the year that it would not hear it directly. That means it must now first go through the High Court and Supreme Court of Appeal before it might possibly get to the Constitutional Court. Of course, a settlement might be reached before it get there or one of the parties may chose not to appeal.  Adv Shaw however commented that he was instructed to take it all the way until proper restress was obtained for the damage done to his clients by the banks.

While the delay might have been a small setback for some of the applicants, it was good news for more than 50 others who have since November joined  who would otherwise have missed chance to participate.

Advocate Shaw also explained “the case has slightly changed because we have already won in one respect. New Rule 46A now means a court is able to set a reserve price. This was formally forbidden. Hopefully the court will use this power to ensure proper prices are obtained. We no longer now have to seek the same relief as previously from the courts. The banks opposed these new rules tooth and nail, but justice is prevailing against their iniquitous practices, little by little.”


If you have had your house sold for less than it was worth, then you can still join for now by contacting and talking to the legal team.