National Australia Bank (NAB) failed to adequately support 345 of its most vulnerable customers who sought hardship assistance, according to documents filed by the Australian Securities and Investments Commission (ASIC) in the Federal Court.
ASIC alleges that between 2018 and 2023, NAB and its subsidiary, AFSH Nominees Pty Ltd (AFSH), breached legal requirements by not responding to 345 hardship applications within the mandated 21-day timeframe.
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.”
Longo added, “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 court declarations, financial penalties, and adverse publicity orders against NAB and AFSH. Today’s announcement follows similar action by ASIC against Westpac in September 2023 for financial hardship misconduct.
