Latest news with #DouglasShaw
IOL News
18 hours ago
- Business
- IOL News
Homeowners rise: Class action against SA banks echoes Erin Brockovich's fight for justice
Advocate Douglas Shaw is spearheading the class action lawsuit against banks. Image: Supplied In what reads like a modern-day David vs. Goliath, more than 100 000 former homeowners are taking on South Africa's 'Big Four' – Absa, Standard Bank, Nedbank and FirstRand – in a R60 billion class-action lawsuit set for February 2026. The reputations of these banks are on the line. For institutions that constantly tout putting the customer first, this legal showdown threatens to take a wrecking ball to that image - one they may struggle to recover from. It's a major headache, and it could very well be a turning point in how banks are held to account in South Africa. This class action is not just about money. It's about power, dignity, and justice. It's a wake-up call to all of us that even the most powerful institutions are fallible - and can be challenged. The applicants in this case have stepped forward, and it's heartbreaking to consider what they've endured. These are people who fell on hard times, couldn't meet their mortgage payments, and had their homes repossessed. But the real scandal lies in what happened next: the homes were sold at auctions, sometimes for as little as R1 000 - often with no reserve price, no regard for actual market value, and no concern for the human cost. This was allowed under pre-2017 rules, when South African courts didn't require a minimum sale price. Thankfully, that loophole has since been closed. But for those who suffered under the old regime, the scars remain. As a homeowner myself, I can't begin to imagine what they went through. How powerless they must have felt going up against the might of the banking system. Blood, sweat, and tears went into trying to keep their homes. In the end, they lost not just property, but dignity. Now, after seven long years, these former homeowners are finally getting their day in court. It's worth remembering that justice in South Africa is not always accessible. Our courts are under-resourced, backlogged, and too expensive for the average person. But in this case, the Lungelo Lethu Human Rights Foundation has taken up the fight, led by Advocate Douglas Shaw. Shaw says banks should have thought about the Constitution before acting - and he's pushing for a criminal investigation into each sale. 'When I go to court, I go up against 27 people,' he told Stephen Grootes on The Money Show. 'Me versus large numbers of people from the top banks in the country. It's a scary thing to do. Most lawyers would say no. It's difficult.' Interestingly, Shaw's research shows that having your house sold for much less than the market value has only happened in South Africa. He is appealing to people to step forward, tell him your story and to get get your case out there. "You can help us help you by filling your case into our class action, which will in turn make you viable for reinbursement of the money you have lost," he says on his website. This isn't just a legal case—it's a moral one. And it's one the country will be watching closely. It brings to mind the story of Erin Brockovich, the woman played by Julia Roberts in the film, who took on a massive corporation in a fight for justice. Brockovich was an ordinary person who refused to be silent, and her courage changed lives. In the film Brockovich, a legal clerk named Erin Brockovich uncovers a massive cover-up by Pacific Gas & Electric (PG&E) involving the contamination of Hinkley, California's water supply with hexavalent chromium. The contamination, linked to a PG&E compressor station, caused serious illnesses among residents. Brockovich, along with her boss Ed Masry, spearheaded a class-action lawsuit against PG&E, culminating in a record-breaking $333 million (R5.9 billion) settlement for the affected residents. The case highlighted the dangers of industrial pollution and brought Brockovich to national attention, later inspiring the 2000 film. That same spirit is alive here. South Africa's former homeowners may not wear suits or command boardrooms, but they are standing up, together, against a system that failed them. If Erin Brockovich marked a moment of reckoning in the US, this could be ours. A moment when ordinary citizens remind powerful institutions that they are not untouchable. And if the banks are found guilty? The implications are massive. Will they absorb the cost or pass it on to consumers? Will trust in the financial system crack even further? It's unlikely the banks will lose their licences—such a move could shake the entire economy—but their reputations may never fully recover. One thing is certain: South Africa's financial sector will not be the same again. Philippa Larkin, is the executive edior of Business Report. Image: Supplied Philippa Larkin in the executive editor of Business Report. If you need help against the banks from Dr Advocate Shaw and his team: contact Dr Advocate Shaw· If your house has already been sold at:banksoldmyhouse@ If your house is about to be sold at:now@ If you want to help the cause at:volunteers@ BUSINESS REPORT
The Citizen
6 days ago
- Business
- The Citizen
R60bn class action suit against the banks set down for 2026
Hundreds say their properties were repossessed and sold by the banks for a fraction of their worth. At stake for the banks – the average loss of home equity multiplied by more than 100 000 homes repossessed since 1994. Plus interest. Picture: Adobe Stock Several hundred former homeowners who say their properties were repossessed and unlawfully sold by the banks for a fraction of their worth will finally get their day in court in February 2026 for a R60 billion class action suit that was initially launched in 2017. The court must first decide whether the class can be 'certified', a formal process that would allow the complainants to sue as a single entity. 'It's taken eight years to get this far, but we are moving in the right direction,' says Advocate Douglas Shaw, who is representing the former homeowners. The first hurdle to overcome is an objection by the banks to some of the affidavits filed by some applicants. Four South African banks are cited as respondents – Nedbank, Absa, Standard Bank and FirstRand Bank. Read more Standard Bank's 'disproportionate' attempt to foreclose on Vavi's home fails Also cited are the National Credit Regulator (NCR), the Minister of Justice and Constitutional Development, and the South African Human Rights Commission. The applicants in the case had their homes repossessed after supposedly falling into arrears, with some homes being auctioned by the banks for R1 000 and even less. This was at a time when there was no floor (or reserve) price required by the courts. Court rules were changed in 2017, requiring banks to reserve prices in all but exceptional circumstances. ALSO READ: Class action suit shows banks sell repossessed houses for cents in the rand Big numbers The R60 billion figure is the estimated average loss of home equity multiplied by the more than 100 000 homes repossessed since the Constitution of the Republic came into effect in 1994. Shaw says this is a conservative estimate. The applicants argue that this practice deprived homeowners of equity accumulated in their properties, and was in violation of constitutional protections against arbitrary deprivation of property. They want the court to order the banks to repay the difference between the market value and the auction price – and to pay interest on the difference from the date of auction. Repossession 'last resort' say the banks In their court filings the banks say they were complying with the applicable law at all times, and that home repossession is a last resort. All the banks cited as respondents argue that they engage customers in financial distress to assist them in getting back on their feet, for example through payment arrangements and loan restructuring. Only when there is no hope of recouping their mortgage loans do they approach the courts to repossess. ALSO READ: National Credit Regulator accused of siding with banks in R60 billion class action suit Repossession 'first resort' say others Lungelo Lethu Human Rights Foundation, the driving force behind the class action suit, says it's looking forward to challenging the claims from the banks, and that it possesses substantial case history to buttress its argument that home repossession is in many instances a first rather than last resort. Multiple cases, some of them heard in court this year, appear to support the foundation's arguments. This week a high court judge slammed Standard Bank for its 'disproportionate' attempt to foreclose on the home of trade federation leader Zwelinzima Vavi, even as he was consistently paying off the arrears on his home loan. Last week Absa was rebuked for attempting to attach a property as a way to recover R6.7 million when the judge found its accounting in disarray. There was also uncertainty about whether or not the client was in arrears at all. ALSO READ: Banks hit with class action suit over 'unlawful' home foreclosures Abusive practices Shaw says the Constitution, under a democratic government, has failed to enact necessary reforms governing the banks, particularly as research has shown that SA has some of the most abusive foreclosure practices in the world. 'This has been going on since before the Constitution even came in,' he adds. 'But you would think that when the Constitution came in, the banks would have stopped doing this and it affects more than 100 000 people in this country who we believe the banks have sold their properties for significantly less than they could have sold them for what they were worth. 'This is before we got the reserve price as some form of protection in 2017, but even today, with the reserve price, they sometimes sell them for 50% or 70% of their value,' says Shaw. ALSO READ: Smackdown for Standard Bank in home repo case 'Forced removals' Lungelo Lethu Human Rights Foundation president Nkululeko Xhelithole says banks are pursuing removals akin to those of apartheid, but this time under the guise of foreclosure. 'During apartheid, there were forced removals. We accepted that. We fought against that. Now, in today's era, forced removals are called evictions because people are still thrown away out of their houses. 'Our Constitution says if you evict a person, give them an alternative accommodation suitable for their needs. But it does not happen in our country,' he adds. 'The question we want answered is: Do the banks' commercial rights supersede our constitutional rights? We say no, they don't.' ALSO READ: Court rules in favour of clients in Standard Bank home loan dispute Auctioning properties for R1 000 Evidence to be presented in court shows banks auctioning properties for R1 000 when the market value was R200 000 to R440 000, and in one case R1.3 million. Much of this information was collated at the request of the NCR which, strangely, attempted to suppress public disclosure of this evidence, citing the disclosure prohibitions of the National Credit Act and the Protection of Personal Information Act. The NCR's efforts to conceal this information, even though names had been redacted, was defeated in the Gauteng High Court in 2022. This outraged consumer activists and the Lungelo Lethu Human Rights Foundation, who believe the NCR should have joined its case against the banks but chose not to. This article was republished from Moneyweb. Read the original here.
IOL News
22-05-2025
- Business
- IOL News
New developments bring hope to the R60 billion class action against major banks
Advocate Douglas Shaw, who is spearheading the R60 billion class action against the major banks, is hopeful that the matter will be heard soon, as a judge has now been allocated to adjudicate the matter. 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. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading 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.
IOL News
21-05-2025
- Business
- IOL News
New hope for the R60 billion class action against banks
Advocate Douglas Shaw, who is spearheading the R60 billion class action against the major banks, is hopeful that the matter will be heard soon, as a judge has now been allocated to adjudicate the matter. 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. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ 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@ (if your house has already been sold) or if your house is about to be sold, email them at now@ Those who want to help with the administration of the cause can email the team at volunteers@
IOL News
24-04-2025
- Business
- IOL News
R60bn class action against banks lauded
The R60 billion class action against the country's major banks for repossessing people's homes and selling them far below market value could be certified by the end of this year. Once the class action is certified, it is hoped that things will run much faster and the banks will pay the hundreds of claimants who are now in dire financial need after losing their homes. Advocate Douglas Shaw, who is representing the claimants, gave the assurance that he is doing what he can to obtain compensation for those who have lost their homes. Shaw stated that in an attempt to expedite the process, they are also launching a volunteer project for people to help with the administrative elements. While he is trying to get the class action certified as soon as possible before the Gauteng High Court, Johannesburg, there are many 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. Once this technical argument is out of the way and there are no more hurdles, he will file his arguments in the main certification application and then await a date from the court about when it can be heard. Shaw said it has been more than four years since they filed their application, but things are moving slowly as he alleged the banks came up with delaying tactics. Another reason for the slow pace is that the judge who had to oversee the matter was on a six-month leave. Shaw said he believed that unreasonable damage had been done by the banks to these people. 'No one thinks what they (the banks) have been doing - in some cases selling homes for as little as R100 - is okay. They should pay these people back,' Shaw said. According to him, the right thing to do for the banks is to pay the people in the class action as soon as possible and to come to an arrangement regarding those who are not yet part of the class action. Many of these people had their homes auctioned off for as little as 10% of their market value, and have been homeless and destitute for over a decade while the banks recovered their debts. Most of these individuals are poor and not able to recover their losses after losing their homes to banks such as Absa, Standard Bank, FirstRand Bank, and Nedbank. Up to 2017, the banks were selling houses at sheriff auctions, without a reserve price, thus leading to substantial losses and the owners still owing large sums to the bank after the auction. In 2018, the court altered the rules to include reserve prices for properties to be sold by auction by a bank. Shaw said things have improved since then, but some homes are still sold at lower than their market value. It is said that the banks sold the properties for substantially less than the properties were worth and not as a last resort. He added that how the banks treat homeowners who fall in arrears is often ruthless and has in many cases ended in tragic outcomes. The banks are opposing the application and they deny any wrongdoing. FirstRand Bank, in a sentiment shared by the other banks, said in its opposing papers that there is a notion that the banks sell properties on 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. People who think they may qualify to join the class action can email bankssoldmyhouse@ (if their homes have already been sold) or now@ if their homes are in the process of being sold. Cape Times
