National Australia Bank (NAB) failed 345 of its customers at their most vulnerable when they applied for hardship support from the bank, according to documents filed by ASIC in the Federal Court today.
ASIC alleges that between 2018 and 2023, NAB and its subsidiary AFSH Nominees Pty Ltd (AFSH) did not respond to 345 hardship applications within the 21-day timeframe required by law.
ASIC Chair Joe Longo said, ‘We allege NAB unlawfully failed to respond to their customers’ appeal for help when they needed them 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.
‘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.
‘Compliance with financial hardship obligations is an enforcement priority for ASIC in 2024. Earlier this year, we put the lending industry on notice on the release of our hardship report.
‘We will not hesitate to take decisive action when banks and lenders fail to comply with their obligations.’
ASIC is seeking declarations, pecuniary penalties and adverse publicity orders against NAB and AFSH.
Today’s announcement follows ASIC’s action against Westpac in September 2023 (23-242MR) for financial hardship misconduct.
