ASIC is suing NAB for allegedly failing to respond to hardship applicants

The Australian Securities and Investment Commission alleges National Australia Bank and its subsidiary AFSH Nominees failed to respond to 345 hardship applications within the legally required 21-day timeframe.

The applications would have been placed between 2018 and 2023.

“We allege that NAB unlawfully failed to respond to their customers’ calls for help when they needed it most,” ASIC chairman Joe Longo said.

“These clients included people who were victims of domestic violence, dealing with serious medical conditions, facing business closures or job losses. NAB’s failures are likely to have exacerbated an already challenging situation for these people. “

Longo said amid rising cost-of-living pressures, an increasing number of customers were contacting their lenders for assistance.

“And we have seen first-hand the impact on lives and livelihoods when lenders fail to adequately support customers in financial difficulty,” he said.

“Enforcing financial hardship obligations is an enforcement priority for ASIC in 2024.”

ASIC is seeking declarations, financial sanctions and adverse publicity orders against NAB and AFSH.

NAB said it acknowledged the legal action.

NAB group director, customer and corporate services, Sharon Cook, said the bank had raised the issue with ASIC in October last year.

“We are sorry that this happened when some of our customers were in difficult situations and needed us to be there for them,” Cook said.

‘We want to ensure that these customers receive the support they need.

“Following the ASIC report on industry hardship, we have also been working on a new approach to supporting customers in financial difficulty. This includes consultation with consumer advocates.”

NAB and AFSH nominees are now considering the details of the proceedings brought by ASIC and said they would continue to cooperate fully with the regulator.