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Market regulator ASIC is taking National Australia Bank (ASX:NAB) to court for allegedly failing to address nearly 350 hardship applications from customers.
NAB CEO Sharon Cook was quoted in a release on Monday as stating the allegations were aired back in October 2023. To be sure, the bank hardly filed a rejection of the allegations.
“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.
“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,” Cook also said, clearly hinting at what the company’s damage control strategy will be.
The bank wrote it is “considering the detail” (sic) of ASIC’s lawsuit and will “continue to cooperate fully with the regulator.”
The context and timing of the hardship applications speaks a lot to the thrust of this case.
While the claims window actually kicks off in October 2018, just over a year before COVID-19, it extends to September last year – well within the ‘cost of living crisis’ window (and capturing applications made while inflation was far higher.)
“‘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,” AISC chief Joe Longo said.
NAB last traded at $38.53/sh.
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