Reading Time: 3 minutes
Getting His House Back
In a victory against a major bank, homeowner Prenash Somlal managed to have the Gauteng High Court overturn a default judgment that led to the sale of his home.
Don’t Worry. We Won’t Go To Court
Mr Somlal owed the bank some money on his bond.
He and the bank disagreed about how much was owed. Then the bank began threatening legal action.
The initial judgment against the consumer was granted when Mr Somlal did not attend court after being assured by a bank employee that the case would not proceed.
‘Mr Somlal did not attend court after being assured by a bank employee that the case would not proceed’
Even though he had been told the matter would go no further while they were trying to sort the matter out, the Bank did actually go to court. As a result, the court allowed the sale of his property based on incorrect calculations provided by the bank.
The bank obtained a default judgment for an amount it claimed he owed, and his property which was valued at R1.4 million was sold at auction for a reserve price of only R700,000.
This was all going on while Mr Somlal and his elderly mother were living in the house and while he was still corresponding to the bank about how much was actually owed to them (incl arrears on the municipal account).
You can imagine Mr Somlal’s shock at finding out the house had been auctioned off.
Fighting To Get His House Back
In an effort to set things straight, Mr Somlal took the matter to the Gauteng High Court to fight to set aside the default judgment and the subsequent sale.
He was in for a hard fight.
When the matter got to High Court all the facts and figures were looked at in detail and several errors were discovered. One such significant error was what the bank said was owed on levies. The bank told the court he owed R61,076 in levies, but when investigated the municipal account showed only R1,276 was actually owed.
The bank later said this R60 000 difference was just a “typing error,” which Judge Nelisa Mali deemed both “unfortunate” and critical to the case.
Mr Somlal also highlighted contradictions in the amounts claimed by the bank at different times:
Before the Default Judgment the bank said he owed R124 333
After securing the default judgment, the bank issued him a statement showing he owed R94,488
Judge Mali noted this discrepancy as a serious injustice, stating that the reserve price for the sale would have been different had accurate figures been presented.
A Win For The Consumer
In the end, the court found that the default judgment had been granted in error and set it aside.
What a big win for Mr Somlal and a big relief for his elderly mother. It was a long, expensive and tiring fight but some battles are worth fighting.
This case reminds us that banks can make errors and just how important it is for consumers to keep records of all correspondence, statements and agreements. You never know when you might need them.
‘keep records of all correspondence, statements and agreements. You never know when you might need them’
It also highlights the need for consumers not to just take bank employees or collections agents at their word over the phone when they say that there will be no further legal action. It is important to get any such agreements in writing or to ensure you go and defend any legal action.
The post They Sold His House On Auction first appeared on Debtfree Magazine.