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New ERA think they have found a securitisation precedent back in 2008.

NewERA are a consumer group who want to ensure more clarity and transparency in regard to bonds and credit. They have been discussing the issue of securitisation (where a creditor sells off a consumers loan to another party and gets paid in advance) for some time now. They have faced ever increasing opposition from large creditors who practice securitisation on an ongoing basis. However some of these creditors then sue for these loans or bonds when consumers don’t pay. NewERA feel they have no right to do so having sold the debt. NewERA recently encouraged SABC 3’s Special Assignment to investigate further. They did so and released a show all about this issue.

New ERA logo
 

 

A young couple from Cape Town has now approached NewERA after watching  Special Assignment, where the banks and securitisation were highlighted. This couple handed them a written High Court Judgment where FNB tried to act as agents for one of their securitisation SPVs

In the Judgement Judge Moosa told FNB that they have no case and dismissed the matter. FNB could not show a connection between the bank, the SPV and the customer. Judge Moosa dismissed the bank’s case .

You can read the judgement here:

Read the Judgment here: http://downloads.newera.org.za/May%20Hearing/Judge%20Moosa%20Judgment.pdf

If not for the work of NewERA and Special Assignment, not to mention this couple who represented themselves in Court without an attorney, this Judgment would probably have remained buried. Now that NewERA have it, the feel that this judgment could be used to help people keep their assets.

 

To learn more about NewERA head over to: http://www.newera.org.za/