News about Australia

[Alexender NoahParticipant]

NAB and subsidiary ordered to pay $15.5 million after ASIC takes court action

A big four bank and one of its subsidiaries have been ordered to pay $15.5 million for failing to respond to struggling customers.
The Federal Court yesterday ordered National Australia Bank (NAB) and AFSH Nominees to pay the penalty for failing to respond to 345 hardship applications within the legally mandated 21-day timeframe.
Justice Penelope Neskovcin said the reasons customers gave for their hardship included medical issues or emergencies, bereavement, family violence, family breakdown, the pandemic, business failure, natural disaster and unemployment.

She said the breached National Credit Code provisions were important to help protect customers and the number of breaches was “high, indicating the significant scope – and thereby the seriousness – of the contravening conduct”.
The Australian Securities and Investments Commission (ASIC), which brought the action, said the penalty highlighted the seriousness of the failures to support customers facing financial hardship.
“These failures likely made an already challenging time in people’s lives far worse,” ASIC deputy chair Sarah Court said.

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