R100 Homes and a R60 Billion Court Battle: South African Banks Face Class Action Over Repossessions

A high-stakes legal showdown is on the horizon as four of South Africa’s largest banks prepare to face a R60 billion class action lawsuit over allegations of unlawful home repossessions and below-market sales.

Scheduled to go before the courts in February 2026, the case could become one of the most consequential financial justice battles in the country’s history. It involves hundreds of former homeowners who allege their properties were repossessed and sold at prices as low as R100, leading to widespread homelessness and financial devastation.

The banks named in the suit include Absa, Nedbank, Standard Bank, and FirstRand. Also listed as respondents are the National Credit Regulator, Minister of Justice and Constitutional Development Mmamoloko Kubayi, and the South African Human Rights Commission.

From Homeowners to the Homeless: The Human Cost

The case was originally filed in 2017, but has yet to reach the trial phase as the court first needs to certify it as a class action. This legal milestone would allow the plaintiffs—many of whom are now in severe financial distress—to sue collectively rather than individually.

According to court documents and statements made by legal representatives, some homes were auctioned off at just 10% of their true value, with several cases showing sales for as little as R100. Advocate Douglas Shaw, a prominent figure in the legal fight, told IOL earlier this year:

“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.”

EFF and Civil Society Join the Chorus

The Economic Freedom Fighters (EFF), led by Julius Malema, have thrown their weight behind the case, describing it as “long overdue” and accusing the banks of predatory and exploitative practices that disproportionately affected poor and Black South Africans.

“These homes were not just buildings—they were people’s only safety net. Selling them far below market value was a violation of their basic rights and financial dignity,” the party said in a statement.

The EFF also emphasized that primary residences—which should have additional legal protections under South African law—were often sold off without regard to alternative solutions like restructuring payment plans or debt mediation.

Banks Push Back

Despite public outcry, the banks have pushed back, denying any wrongdoing and vowing to contest the claims in court. Their legal teams argue that all repossessions and sales were conducted in accordance with existing laws and procedures.

The outcome of the class action certification process will be pivotal. If granted, it could pave the way for a full-scale trial and potential damages or compensation orders running into billions.

What’s Next?

Legal analysts say that once certified, the case could move more swiftly, increasing pressure on the banks to consider settlement talks or face reputational and financial fallout.

As South Africa continues to grapple with growing inequality, housing insecurity, and corporate accountability, this case has come to symbolize more than just financial loss. For many plaintiffs, it’s about restoring dignity, correcting injustice, and holding powerful institutions to account.

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