ASIC Takes Legal Action Against NAB Over Financial Hardship Failures

The Australian Securities and Investments Commission (ASIC) has filed a lawsuit against National Australia Bank (NAB) for alleged failures in assisting customers experiencing financial hardship. According to court documents filed today, ASIC claims that NAB, along with its subsidiary AFSH Nominees Pty Ltd (AFSH), failed to process 345 hardship applications within the legally required 21-day timeframe between 2018 and 2023.

ASIC asserts that the bank's actions left customers vulnerable during critical times when they sought support. In response, the regulator is pursuing declarations, financial penalties, and orders for public accountability against NAB and AFSH.

This development follows a similar case in September 2023, where ASIC took action against Westpac for alleged misconduct concerning financial hardship.

NAB has not yet publicly commented on the lawsuit.