ASIC Sues National Australia Bank Over Alleged Failure to Respond to Financially Distressed Customers' Appeal

MT Newswires Live06:12

The Australian Securities and Investments Commission (ASIC) launched legal proceedings against National Australia Bank (ASX:NAB) over the latter's alleged failure to respond to financially distressed customers' appeal, according to a Monday statement from the regulator.

ASIC said NAB and its subsidiary, AFSH Nominees, had failed to respond to 345 hardship applications within the 21-day timeframe required by law between 2018 and 2023. The customers included victims of domestic violence, as well as those with serious medical conditions and dealing with business closures or job loss.

"NAB's failures likely compounded the already challenging situation for these people," said ASIC Chair Joe Longo.

ASIC is seeking declarations, pecuniary penalties, and adverse publicity orders against NAB and AFSH, the statement read.

In a Monday filing with the Australian bourse, NAB acknowledged the legal proceedings and said it will "continue to cooperate fully with the regulator."

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