Zethu l Tobo
Johannesburg
29/August/2025

Dear Portfolio Committee on Human Settlements,

I am writing as a concerned citizen about the lack of protection for homeowners who lose their jobs through no fault of their own. Currently, when South Africans are retrenched, banks continue to demand full bond repayments. If instalments cannot be met, families face repossession and eviction, even after years of paying faithfully.
This practice is deeply unfair and worsens poverty, inequality, and homelessness. Retrenchment is not a choice — it is often the result of economic conditions beyond an individual’s control. Yet our financial system places all the risk on the borrower while banks remain protected.
I respectfully urge you to consider:

• Mandatory retrenchment cover on all home loan credit life insurance policies, just as death and disability cover are already required.

• A temporary payment holiday or instalment pause (6–12 months) for homeowners who can prove retrenchment, giving them time to recover and seek new employment.

• Stronger judicial oversight to prevent the rapid repossession and undervalued sale of homes, which leaves families destitute while banks profit.
Such reforms would protect ordinary working families, uphold the constitutional right to housing, and create a more humane and balanced financial system.
I ask that you bring this matter to Parliament and begin discussions with the banking sector, regulators, and civil society to implement urgent reforms.
Thank you for your attention to this issue, which affects thousands of South Africans every year.

Sincerely,
Zethu Tobo