Homeowners rise: Class action against SA banks echoes Erin Brockovich's fight for justice

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.

- PHILIPPA LARKIN

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.