Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Federal Court issues class action notice to NAB customers

Federal Court issues class action notice to NAB customers

Approximately 400,000 NAB customers have been advised that they may be eligible to join a class action against the major bank for alleged mis-selling of credit insurance.   

The Federal Court of Australia has issued notices to over 400,000 NAB customers, informing them that they may be eligible to join law firm Slater and Gordon’s consumer credit class action.

The class action relates to the alleged mis-selling of personal loan and credit card insurance to NAB and MLC customers.

Advertisement
Advertisement

Slater and Gordon has claimed that the insurance was “of little or no value” to customers who would “never have been eligible to claim against”.

The class action was issued in 2018 in response to the banking royal commission and is based on allegations that NAB engaged in “unconscionable conduct” and “misleading and deceptive conduct”.

Commenting on the Federal Court’s issuance of notices to NAB customers, Slater and Gordon’s practice group leader, Andrew Paull, said: “NAB will have to contact over 400,000 of the customers on their databases, informing them that this class action exists, that the bank is accused of contravening the law and telling them what they have to do to be involved.

“[NAB] knows that using pushy tactics and pressuring vulnerable customers into buying worthless insurance was wrong. They did it anyway and collected millions of dollars in unwarranted premiums in the process.”

The court-ordered letter would also give customers the option of opting out of the class action, if they wished.

In a statement to Mortgage Business, a NAB spokesperson acknowledged the issuance of the court-ordered letter.

“The notices provide those potential class members with information about the class action and their options,” the spokesperson said.

We are here for our customers and encourage them to contact NAB directly if they have any questions in relation to their CCI policies on 1300 168 909.

As the matter is now before the court, we are unable to comment further on the class action.

This follows last month’s announcement from the Australian Securities and Investments Commission (ASIC), which revealed that it has commenced enforcement investigations into a number of entities that have been involved in mis-selling consumer credit insurance (CCI), claiming that the design and sale of CCI has “consistently failed consumers”.

The defendants to ASIC’s future action will reportedly be publicly identified at the time proceedings commence. 

[Related: Lenders blasted for ‘consistently failing’ consumers on CCI]

Federal Court issues class action notice to NAB customers
Federal Court of Australia
mortgagebusiness

Charbel Kadib

Charbel Kadib is a journalist on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Latest News

The Australian Securities and Investments Commission has commenced a court case against NAB over allegations that 16 bankers accepted loan i...

The CEO of an ASX-listed mortgage business has seen demand for housing loans “rise significantly” in response to the recent shift in sen...

The non-major has reduced variable and fixed rates across its owner-occupied and investment home loan products. ...

FROM THE WEB
podcast

LATEST PODCAST: Acquisitions and evolution

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.