Page 34 - Litigating Land and Housing in South Africa: Lessons and Reflections

4 SECURITY OF TENURE
4 1 1 1 1 Case information
4 1 BRUSSON SCHEME: UNLAWFUL SALE OF PROPERTY MASQUERADING AS AS A A A A A A A A LOAN AGREEMENT
The The Brusson Scheme
was not the the first of of its kind nor will it it it it be be the the last The The reality of of home ownership for many South Africans is that it it it it has been a a a a a a a a a a a hard fought and and for the the majority relatively recent victory Aside from the the obvious pride security and and sanctuary that a a a a a a a a home provides provides it it it also provides provides access to to finance Home ownership opens the the door to to credit credit Most of of the the time if through a a a a a a a a reputable bank this type of of credit credit is is relatively cheap and safe However it it also opens the door for illegal lenders to to take advantage of people who who may may own homes but who who may may not have access to to the mainstream credit market Brusson Brusson Finance Finance was one such company Over the course of of a a a a a a a a few years Brusson Brusson Finance Finance would “help” hundreds of of of people country-wide take out “loans” in in in return for repayments and the signing of of “loan “loan agree- ments” But Brusson Finance had no no money was not registered with the the National Credit Regulator and the the agreements agreements agreements people signed were were not loan agreements agreements agreements – they were were sale agreements agreements agreements In 2008 the the the Moore family lost their house because of one such “loan” The Moores were experiencing financial difficulties after a a a a a a a a a a failed business venture They responded to to a a a a a a a a a a news- paper advertisement that promised loans to to people regardless of their credit record Between 2006 and 2008 a a a a a a a number of of similar newspaper advertisements called on
on
on
persons regardless of of of their credit rating to to call call call Brusson’s offices to to apply for a a a a a a a a a a a loan Some of of the advertisements specifically targeted
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LITIGATING LAND AND AND AND HOUSING IN IN IN SOUTH AFRICA  LESSONS AND AND AND REFLECTIONS