The Australian Securities & Investments Commission (ASIC) is suing National Australia Bank (NAB) for failing to help vulnerable customers when they applied for hardship support.
NAB, one of Australia’s four largest banks, and its subsidiary AFSH Nominees Pty Ltd (AFSH) did not respond to 345 hardship applications within the 21-day timeframe required by law, according to documents filed by ASIC in the Federal Court on Monday.
ASIC is seeking declarations, pecuniary penalties and adverse publicity orders against NAB and AFSH.
ASIC Chair Joe Longo said NAB unlawfully failed to respond to the customers’ appeal for help when they needed it most.
“These customers included people who were domestic violence victims, battling serious medical conditions, dealing with business closures or job loss. NAB’s failures likely compounded the already challenging situation for these people,” Longo said in a statement.
“Amidst rising cost of living pressures, we have seen an increased number of customers reach out to their lenders for relief, and we have seen first-hand the impact on lives and livelihoods when lenders fail to appropriately support customers experiencing financial hardship.”
NAB Group Executive, Customer & Corporate Services Sharon Cook said NAB was focussed on ensuring customers received the support they needed.
“We’re sorry that this happened when a number of our customers were in difficult situations and needed us to be there for them,” Cook said in an ASX announcement.
NAB and AFSH Nominees were considering the detail of the proceedings and would continue to cooperate fully with the regulator.
National Australia Bank (ASX: NAB) shares closed on Monday at $39.16, down 6 cents (0.15%). It has a market cap of $120.38 billion.
ASIC took legal action against another of Australia’s Big Four banks, Westpac Banking Corporation (ASX: WBC), in September 2023 for financial hardship misconduct.