Evidence of repossessed homes being sold for a pittance can be used in R60bn class action suit – court

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Some homes were sold for as little as R1 000, and wanting to protect the banks has led to an accusation that the NCR is a captured institution. Moneyweb SouthAfrica homeloans

An attempt by the National Credit Regulator to suppress disclosure of a key piece of evidence showing how banks were repossessing homes and then selling them at auction – sometimes for less than 10% of their market value – was defeated in court this week. Read: Evidence that banks sell repossessed houses for cents in the rand “This is a major victory in our class action suit against the banks,” says King Sibiya, president of the Lungelo Lethu Human Rights Foundation.

Read: Standard Bank accused of ‘double dipping’ in home repo case Banks hit with class action suit over ‘unlawful’ home foreclosures “The documents [obtained from the NCR] are from the banks’ own records and show thousands of instances where banks have sold properties for far less than what they were worth, with hundreds below 10% of what they were worth,” says Shaw. “This is outrageous.

 

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Back in the day, it worked like this: There being no serious bidders, the bank would acquire the home at the sale in execution for R100. They then sell it to best advantage then credit the client with the sale proceeds and pursue them for the shortfall.

The whole system is rigged! 😡😡😡 Been happening for ages. A few connected benefit.

Capitalism when unchecked 🫤

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