Banks are being sued over repossessed house selling – The Star

The Cosmo City Chronicle reported on Cosmo City houses being sold in execution en masse to a few individuals some couple of months ago. Last week, “The Star” newspaper carried an article on Banks being sued over selling of repossessed houses that were being sold at way below market value and re-sold for a profit. “Fifty people represented by Housing Class Action, are taking the country’s four major banks to court” reported ‘The Star’ saying that the victims want their repossessed properties or a substantial monetary compensation. This was after a specialist in banking law found that most countries, if not all sold houses at market value.

It is sad that it had to take a specialist from Scotland for a major action to be finally in motion especially when we have been screaming about it all along. Cosmo City victims could also benefit from the resultant class action that this matter is hoped to become, where the banks might have to pay back everyone in the country in similar situations. Some houses where being sold for as little as R300.00 said the report and that cannot be right.  The report says Properties are being sold below 30% of market value and that should stop. “Whatever the law and the constitution say in defence of the people, in real practical terms, working class black people do not have the right to own property in certain areas in South Africa in 2015” said the organisation bringing the Class Action lawsuit to force banks to stop repossessing people’s homes, and then selling them off for a fraction of their market value.

Cosmo City Chronicle had battled to get access to information required to speed up the investigation but thanks to some people who have information who keep coming up and letting us know.

One family which was evicted from their home for as little as R8000.00, even though they were paying something to the bank, are now living in the RDP extension were they are paying exorbitant rentals – more than what they were paying for the bond. All they needed was for their bank to be on their side during a time of need – a simple payment arrangement.

The matter for the Cosmo Houses sold at the Krugersdorp Sheriff should then be simple as it may now have a reference case similar to its own being heard by the courts.

Mamphela Ramphele once said, “Fierce corruption is allowed to happen because the system allows it to happen. For example: a piece of legislation from 1936, called the Insolvency Act, can be used to destroy a family and take from them everything they own. This piece of legislation is so old, it still uses British Pounds! How much longer will you let these old systems cripple you?” she asked.  These are statutes which are monumental statues for which our university students could be finding energy for to debate and change.