ASIC Sues National Australia Bank Over Hardship Failures

The Australian Securities and Investments Commission (ASIC) has initiated legal action against National Australia Bank (NAB) for failing to respond to 345 hardship applications within the legally mandated 21-day timeframe from 2018 to 2023. ASIC alleges that NAB, along with its subsidiary AFSH Nominees, neglected the needs of vulnerable customers, including domestic violence survivors and individuals facing severe health issues or job loss, exacerbating their financial difficulties. ASIC Chair Joe Longo emphasized the significant impact of these failures, particularly amid rising cost of living pressures, and highlighted that compliance with financial hardship obligations will be a key enforcement priority for 2024. NAB has acknowledged the situation and expressed regret, stating it is working on improving its approach to handling hardship cases. The regulator is seeking declarations, penalties, and adverse publicity orders against the bank. This legal action follows a broader review of financial hardship practices among major lenders, revealing critical shortcomings in their support systems.