(Reuters) – Australia’s corporate watchdog on Monday filed a civil suit against the country’s second-biggest lender National Australia Bank (OTC: Initiated penalty proceedings.
The Australian Securities and Investments Commission (ASIC) claims NAB and its unit AFSH nominees failed to meet a statutory deadline of 21 days to respond to 345 hardship requests over the five years from 2018 to 2023. .
Under Section 72 of the National Credit Code, if a consumer notifies their creditor that they are unable to meet their credit obligations, the creditor must consider changing the customer’s credit contract and provide them with specific Decisions should be advised within time frames.
“NAB and AFSH nominees are now considering the details of the proceedings brought by ASIC and will continue to cooperate fully with the regulator,” the Melbourne-headquartered lender said in a separate statement.
ASIC said those affected by NAB’s delayed responses included individuals facing severe personal challenges, such as survivors of domestic abuse, struggling with serious health problems, and facing unemployment or the closure of their businesses. Individuals who do, ASIC said.
ASIC Chair Joe Longo said.
Earlier this year, ASIC conducted a comprehensive review of financial distress practices among large lenders, including data collection, policy analysis, and case studies, culminating in a May 2024 report that exposed significant flaws in lenders’ procedures for identifying and helping consumers experiencing financial difficulties. .
