New hope for the R60 billion class action against banks
Image: Zelda Venter
The wheels of justice often grind slowly, especially when courts are facing a shortage of judges, with some cases taking years before they are heard, and the R60 billion class action against the big four banks is facing the same problems - massive and continual delays.
This is according to Advocate Douglas Shaw, who is spearheading the class action against the major banks for repossessing homes and selling them far below market value.
While hundreds of dispossessed homeowners have been eagerly awaiting the certification of the action for some years, Shaw said things may now run more smoothly as the Office of the Gauteng Judge President this week moved the matter to a judge to adjudicate.
'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,' Shaw said.
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He gave the assurance that he is doing what he can to obtain compensation for those who have lost their homes.
Shaw, who has worked hard to secure justice for these individuals, stated that in an attempt to expedite the process, they are also launching a volunteer project for people to help with the administrative side of things.
While he is trying to get the class action certified as soon as possible before the Gauteng High Court, Johannesburg, there are still some hurdles to overcome.
He explained that they must first face an objection by the banks regarding the structure of some of the affidavits filed by the claimants, to which the banks have objected.
'All that is needed is for dates for heads of arguments to be given, and then shortly afterwards, for a set down date for the matter to be heard.'
Commenting on the backlog in civil trials in the Gauteng division, Shaw said that he has many matters against banks waiting for court dates for years.
On the other hand, he said, banks seem to get dates against his clients much more easily. Apart from Road Accident Fund matters clogging the civil trial roll, a large part of the roll consists of house foreclosures and municipality overcharges - cases which should not be there.
'The banks are still trying to get orders to sell people's houses when it is not a last resort.'
He explained that many people fall in arrears with their bonds as they lose their jobs.
But, he said, there are alternatives, such as when bondholders obtain new employment and are once again able to pay. Shaw said the banks should consult with the clients before repossessing their homes.
FirstRand Bank, in a sentiment shared by the other banks, said in its opposing papers in the R60 billion action that there is a notion that the banks sell properties at auctions recklessly and without regard to the property owners, which is 'simply not true'.
FNB said it takes 'every reasonable measure to avoid selling properties in execution'.
The bank stated that consumers are told about their rights, such as that they may take a 'payment holiday' if they fall in arrears and that they only revert to selling a property in execution as a last resort.
Shaw, meanwhile, said people who want to join the class action can contact his team at banksoldmyhouse@drdouglasjshaw.co.za (if your house has already been sold) or if your house is about to be sold, email them at now@drdouglasjshaw.co.za.
Those who want to help with the administration of the cause can email the team at volunteers@drdouglasjshaw.co.za
zelda.venter@inl.co.za
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