Standard Bank settlement deal overturned by SCA over credit act breach

Bank procedures in the spotlight after agreements overturned between Standard Bank and client

- EDWARD WEST

QUESTIONABLE home foreclosure procedures by the banks have become an increasingly big problem for consumers, as highlighted by a recent Supreme Court of Appeal judgement. SUPPLIED

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QUESTIONABLE bank foreclosure procedures have once again fallen into the spotlight following the Supreme Court of Appeal (SCA) decision last week to overturn two settlement agreements between Standard Bank and a defaulting client because the bank had not complied with the National Credit Act.

The SCA overturned the settlement agreements in the Wolmarans Kinder Trust case after the agreements were used by the bank to obtain orders from the Bloemfontein High Court, allowing the bank to sell properties to recover its debt without the consumer being afforded an opportunity to oppose the application or follow some other route to repay the debt, such as a debt review process.

The SCA judgement arose after the Trust and its trustees applied to the SCA to have the High Court orders overturned.