The Australian Securities and Investments Commission (ASIC) has commenced legal action against National Australia Bank (NAB), alleging it abandoned its obligations to more than 300 customers facing financial hardship.
ASIC says that between 2018 and 2023, NAB and its subsidiary AFSH Nominees Pty Ltd (AFSH) failed to respond to 345 hardship applications within the 21-day timeframe required by law.
Joe Longo, ASIC Chair, says NAB failed to respond to their customers’ appeal for help when they needed them most, and by doing so broke the law.
“These customers included people who were domestic violence victims, battling serious medical conditions, dealing with business closures or job loss,” he says.
“NAB’s failures likely compounded the already challenging situation for these people.”
ASIC has launched the action in the Federal Court, and is seeking declarations, pecuniary penalties and adverse publicity orders against NAB and AFSH.
The case marks the third time in recent months ASIC has gone after a financial institution for failing their customers after action against Westpac in September and super fund Cbus just last week.
“Compliance with financial hardship obligations is an enforcement priority for ASIC in 2024,” Mr Longo says.
“We will not hesitate to take decisive action when banks and lenders fail to comply with their obligations.”
Are you a NAB customer? Can you think of any other financial institutions that ASIC should look at? Let us know in the comments section below.
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