DV victims among hundreds major bank 'failed': ASIC

The Australian Securities and Investment Commission claims that National Australia Bank and its subsidiary AFSH Nominees did not respond to 345 hardship applications within the legally required 21-day timeframe.

The applications were allegedly placed between 2018 and 2023.

“We allege NAB unlawfully failed to respond to their customers’ appeal for help when they needed them most,” ASIC Chair Joe Longo said.

“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 amid rising cost of living pressures, there had been an increased number of customers reaching 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,” he said.

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

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

NAB said it acknowledged the legal action.

NAB group executive, customer and corporate services, Sharon Cook, said the bank had brought the issue to ASIC in October last year.

“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.

“We are focused on ensuring these customers receive the support they need.

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

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