Major Banks Face R60bn Lawsuit Over Home Repossessions

by Kelebogile Matlou

Some of South Africa’s biggest banks will finally face legal action in February 2026, as a R60 billion class action lawsuit heads to court nearly a decade after it was first filed. Hundrands of former homeowners are taking legal steps against Absa, Nedbank, Standard Bank, and FirstRand, alongside the National Credit Regulator, Justice Minister Mmamoloko Kubayi, and the South African Human Rights Commission.

The plaintiffs claim their homes were illegally repossessed and sold at auction for as little as 10% of market value, with some reportedly going for as low as R100, resulting in widespread homelessness and financial ruin. The lawsuit was originally filed in 2017, but before it can proceed, the court must decide whether the group qualifies for class action status, allowing them to sue collectively.

“No one thinks what they have been doing in some cases, selling homes for as little as R100  is okay. They should pay these people back,” said Advocate Douglas Shaw earlier this year.

The Economic Freedom Fighters (EFF), led by Julius Malema, have backed the lawsuit, calling it long overdue and accusing the banks of predatory and exploitative practices that have left hundreds of poor, mostly black South Africans homeless.

“The class members argue that the bank’s sales in execution were not only unnecessary in many cases but also represented a grave violation of their rights, as these properties were their primary residences and were sold at far below market value, destroying their savings and security,” the party stated.

The banks are fighting the lawsuit, maintaining they acted lawfully and deny any wrongdoing.