Court rejects FirstRand’s bid to repossess car from deceased woman

The North West High Court in Mahikeng has struck down an application by FirstRand Bank seeking to repossess a vehicle after its owner, Lilian Dinekile Botsane, passed away. The case, FirstRand Bank Limited v Botsane, centred on a 2023 instalment-sale agreement under which Botsane purchased a Ford Figo 1.5Ti VCT Titanium with the bank’s financing.

At the time of her death in January 2024, Botsane was fully up to date with all instalment payments. The first missed payment occurred only in February, after she had already died. FirstRand subsequently issued summons for repossession in August 2024. The bank’s lawyer later conceded during proceedings that it had no knowledge of her death at the time the summons was filed, as its records, including addresses, were outdated.

But Acting Judge Tsakane Tsautse ruled the application legally flawed. Under South African law, a person’s legal personality, and thus their contractual obligations, ends on death. As a result, any claim must be made against the deceased’s estate, represented by an appointed executor, not against the deceased themselves.  The judge noted that the alleged default occurred after her death, meaning there was no breach of contract by Botsane.

Because of this, the court declared the proceedings “null and void” and struck them from the roll. The ruling leaves open the possibility for FirstRand to pursue recovery, if it chooses, by launching new proceedings against the deceased estate rather than the individual.

Responding to the judgment, consumer advocates say the ruling serves as a reminder that banks must regularly update debtor records and exercise due diligence before launching repossession actions. The case underlines the necessity of proper estate-administration procedures when a debtor dies, protecting surviving family members from aggressive or premature enforcement actions.

For the Botsane family, the decision brings relief, ending the threat of losing a car that was paid for in good faith, and offering clarity on how banks must treat credit agreements when their debtors pass on.