A couple nearly lost their house – because Standard Bank lied.
Essentially this is what happened in early August this year, when Standard Bank claimed that the couple had arrears of R93 606 and was calling in their outstanding loan of R382 000 so that they could sell property via a sheriff’s auction.
It’s no secret that banks have been selling off properties for a fraction of their market value for many years now. There are documented instances where homes were repossessed by banks for as little as R10 and then on-sold at auction for a huge profit.
These auctions have also become hang-outs for syndicates who rig the prices, pick up the homes for next to nothing – and then resell them for massive profits.
Due to these practices, there have been claims made that these syndicates were operating out of the sheriffs’ offices.
An affidavit filed in support of an earlier R60 billion class action suit brought by Lungelo Ditokelo Human Rights Foundation against the major banks, found that properties were sold for 50-60% of their proper value, mainly through sheriff’s auctions.
This was based on a sample of 12 000 homes that were repossessed. In one case, where FNB was the creditor, a R1.3 million property was sold for R1 000 at auction.
There is evidence that Standard Bank and Nedbank also had several properties selling at auction for R1 000 but let’s take it back to the case that played out in the Kwa-Zulu Natal High Court on 4 August 2022.
STANDARD BANK LIED ABOUT PAYMENT HISTORY
Judge Henriques found Standard Bank guilty of making false allegations against the couple (whose house was going to be repossessed).
In particular, the bank failed to disclose payments made (also known as lying) by the couple to settle the arrears.
The judge held a Standard Bank official and the bank’s lawyer responsible.
With regards to payments, the judge found that the bank official had made incorrect statements (also known as lying) in her sworn affidavit regarding the couple’s arrears and their payment history in respect of their home loan.
In her affidavit, the bank official said that the last payment made on that home loan account was in May 2020, in the amount of R6202.13.
However, the judge found that the payment history clearly showed that the amount of R10 000 was paid onto this home loan on 19 May 2021.
This means that the Standard Bank official LIED. This isn’t an opinion. This is a fact.
In case you need more legal proof, the judgement reads: “Given the serious nature of these proceedings and the fact that defendants stand to lose their primary residence, one would expect a deponent to the affidavit to disclose all circumstances and to accurately disclose the circumstances in a founding affidavit.
To say that this was a discrepancy pointed out by the court is factually incorrect and may well amount to an act of perjury.
The deponent to the affidavit clearly deposed to an affidavit concerning allegations which were not true.”
I don’t care how you want to sugar-coat things; the truth of the matter is that Standard Bank officials (and their lawyers – because you must remember that it is the lawyers who take all the information and draft it to present in court) have been caught red-handed in lying to repossess someone’s home.
SUMMONS
The bank was found to have served a summons on a post box owned by the homeowners, rather than in person as is required by South African courts.
Where the bank wants a default judgement in order to repossess a person’s primary residence, then the summons must be served in person.
However, the Lungelo Lethu Human Rights Foundation (who also deals with house evictions) says there are many cases on record where the major banks have served summons on children and neighbours.
They say they are also aware of many cases where the arrears (that the banks are claiming) are proven to be false.
MAKING CONTACT
Judge Henriques also noted that Standard Bank failed to make the required efforts to assist the home-owners to find alternative means of settling the debt, instead of selling the home in execution.
Standard Bank claimed it tried to contact the home-owners, by making eight telephone calls and sending SMSes to them before they started legal proceedings.
However, they couldn’t supply evidence or supporting documents to prove this. More lies it seems!
PROPER PROCESS
When you have defaulted on the credit agreement between yourself and the credit provider, they have the right to take legal action against you, but they must follow the correct process.
That process is Section 129 notice – Summons – Judgement – Attachment.
GET YOUR FACTS STRAIGHT
This time, Standard Bank was caught out in their lies with regards to repossession of homes.
Yet, how many other people are victims of this, and are the other major banks complicit as well?
Like I always do, I am going to urge you to take responsibility for your finances.
– Get your paperwork in order.
Know how much you owe every creditor. Know your time period and interest rates.
– Keep track of every payment you make – and keep your proof of payments. Do it “old school” in a physical file if you must.
– Be proactive and speak to your creditor or debt counsellor if you are struggling.
I think Standard Bank should concern itself less with the “negative perception” of Sekunjalo and Independent Media, and look at their own PROVEN track record of wrongdoing.
This tarnished pot shouldn’t be calling any kettles black!
I shudder to think how many other people may have had similar issues with Standard Bank.
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