Connect with us

Hi, what are you looking for?

Stock

Australia regulator sues NAB for breach of financial hardship laws

(Reuters) – Australia’s corporate watchdog on Monday launched civil penalty proceedings against National Australia Bank (OTC:NABZY), the country’s second-largest lender, for failing to respond to hundreds of financial hardship applications within the legally mandated time frame.

The Australian Securities and Investments Commission (ASIC) claims that NAB and its unit AFSH Nominees failed to meet the legal 21-day deadline for responding to 345 hardship applications over a five-year period from 2018 to 2023.

Under section 72 of the National Credit Code, if a consumer notifies their lender that they are or will be unable to meet their credit obligations, lenders must consider varying the customer’s credit contract and advise them of the decision within specified time frames.

“NAB and AFSH Nominees are now considering the detail of the proceedings brought by ASIC and will continue to cooperate fully with the regulator,” the Melbourne-headquartered lender said in a separate statement.

Among those affected by NAB’s delayed responses were individuals facing severe personal challenges, such as survivors of domestic abuse, those struggling with grave health issues, and people coping with unemployment or the closure of their businesses, ASIC said.

“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,” ASIC Chair Joe Longo said.

Earlier this year, ASIC conducted a comprehensive review of financial hardship practices among major lenders, including data collection, policy analysis, and case studies, culminating in a May 2024 report that exposed significant shortcomings in lenders’ approaches to identifying and supporting customers facing financial difficulties.

This post appeared first on investing.com

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Former president Donald Trump and his allies have filed hundreds of lawsuits, with more to come, seeking to tighten voting rules or disqualify voters....

    Economy

    LONDON (Reuters) – Bank of England interest rate-setter Megan Greene said she still believed the central bank should take a cautious approach to cutting...

    Editor's Pick

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Economy

    Thousands of dockworkers on the East Coast and Gulf Coast will return to work after reaching a tentative agreement on wages, ending one of...

    Disclaimer: beneficialinvestmentnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 beneficialinvestmentnow.com