Standard Bank accused of cutting corners while defaulting Homeowner

Standard Bank and its lawyers have been accused by a Durban High Court judge of cutting corners on claims against defaulting a homeowner. The bank has applied for a default judgment and an order to sell the house.

Judge Jacqui Henriques denied the request, saying it contained signs of ‘cut and paste’ work, and ordered a copy of her ruling and the full set of documents be sent to both to the Legal Practice Council and the Banking Services Ombudsman.

Rejecting Standard Bank’s application, the judge said: “In keeping with the principle of judicial oversight and the duty of a bank official as well as a plaintiff to make full and frank disclosure in an affidavit and disclose all relevant circumstances to a court in such application, which has dire consequences for defendants, I have no alternative but to refuse the application for default judgment as well as execution.”

The application was brought by Standard Bank against a couple who registered a bond with the bank on a property in Newlands East.

In August of last year, after they defaulted on their payment obligations, the bank sent them the notice required under the National Credit Act, informing them that they had failed to pay the amount in full and asked them to pay all debts or the bank will take legal action, which it did next, in September.

The bank said the amount owed and noted that the couple first broke the agreement in March 2019 and the bank official detailed the attempt to contact them, including calling them eight times, sending four text messages and six emails.

The application for default judgment was also served on them by placing it in their post box.