A South African court rules that banks may not charge homeowners for costs linked to failed or botched home-repossession processes that rely on improper valuations. The judgment criticises the use of “drive-by” valuations by mortgage lenders when assessing properties for repossession.
The ruling addresses how banks recover expenses after attempting to repossess homes and then encountering problems with the process. According to the court’s reasoning, these valuation methods are unreliable and therefore should not be used to justify costs passed on to affected customers. The decision effectively limits lenders’ ability to recover certain repossession-related charges from homeowners when the underlying steps are found to be flawed.
Both outlets report the same core issue and outcome: the judge questions the valuation approach and bars cost-shifting to homeowners tied to repossession cases. While one outlet describes the criticism more directly as a “drive-by” practice, neither article indicates that the decision changes the broader legality of repossession itself; rather, it constrains how lenders use valuations and allocate associated costs.
