EFF challenges major banks in R60bn class action lawsuit

In a groundbreaking move that shakes up South Africa’s financial sector, the Economic Freedom Fighters (EFF) have thrown its support behind a R60 billion class action lawsuit against the country’s major banks.

The red beret is accusing the banks of engaging in predatory and exploitative practices that have left hundreds of poor, primarily black South Africans homeless and destitute.

In a statement on Saturday, EFF National Spokesperson, Leigh-Ann Mathys, emphasised the deep-seated nature of this issue, pointing out the long history of oppression faced by African people due to colonialism and apartheid.

The class action lawsuit represents over 200 applicants whose homes were repossessed by major banks, such as Absa, Standard Bank, FirstRand, and Nedbank, after missing bond payments.

These homes were then sold at auctions for a fraction of their true market value, leaving the applicants in dire financial straits.

Mathys highlighted the disproportionate impact on black homeowners, who are targeted and lose their homes when facing financial difficulties, while white individuals may receive more leniency.

The EFF is demanding significant changes within the banking sector, including the establishment of a state bank, housing finance subsidies, and stricter laws to prevent banks from repossessing homes.

With a focus on economic justice and equality, Mathys reaffirmed the EFF’s commitment to supporting this case until every victim receives the justice they rightfully deserve.