NAB hit with $15 million fine following shameful act towards struggling Aussies
The big four bank was fined following an investigation where it had failed to respond to hundreds of Australians doing it financially tough.
Between 2018 and 2023, NAB and AFSH did not respond to 345 hardship applications within the required 21-day timeframe.
Affected customers were left unaware for more than three weeks and didn't know if they would be given leniency.
"These failures likely made an already challenging time in people's lives far worse," Australian Securities and Investments Commission (ASIC) Deputy Chair Sarah Court said.
"This decision highlights the seriousness of the failures of NAB and AFSH to support their customers experiencing financial hardship.
"This penalty sends an important message to other financial institutions – customers should be at the centre of what you do.'
Justice Penny Neskovcin said affected customers had asked NAB for help in relation to medical emergencies, family violence, natural disasters, redundancy, and business failures.
Justice Neskovcin added NAB and AFSH breached provisions of the National Credit Code.
None of the 346 customers who didn't hear back in the required time frame suffered any losses.
Justice Neskovcin said the situation could have been helped 'If NAB had provided the affected NAB customers and AFSH customers with the required notices in response to their hardship notices within the prescribed timeframes'.
NAB was ordered to pay $13 million while AFSH Nominees will fork out $2.5 million, as well as ASIC's court costs.
They will also be required to publish a publicity notice on their website and provide a copy of the notice to affected customers.
The notice will provide customers the details of Justice Neskovcin's court order.
'The failures resulted (with a few limited exceptions) from the incorrect use by NAB staff of a particular functionality in its internal system used to manage hardship notices,' the notice reads.
'The causes have since been identified, and NAB has taken steps to address those causes.
'Since ASIC commenced court proceedings, NAB and AFSH have provided affected customers with a response to their hardship notice and conducted a remediation program which included remediation payments and the correction of repayment history information for some affected customers.'
SkyNews.com.au has reached out to NAB for comment.
Meanwhile, much needed relief arrived on Tuesday as the Reserve Bank of Australia cut interest rates for the third time of 2025.
The central bank lowered the cash rate from 3.85 per cent to 3.6 per cent.
The National Debt Helpline revealed over 168,000 people reached out for help in the 2024-25 financial year, making it the biggest spike in numbers since 2018-19.
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