One in 50 Australians may have been fleeced by big four bank

Big four bank engaged in unconscionable conduct and misleading and deceptive conduct, say lawyers.

One in 50 Australians may have been fleeced by big four bank

Nearly half a million Australians may be eligible for representation in a consumer class action against National Australia Bank (NAB), in one of the largest court-ordered notices in Australian legal history.

The Federal Court on Friday began sending out notifications to more than 400,000 Australians about the consumer credit class action, and at least one in every 50 adult Australians will potentially receive the notice as customers of the bank, reports Nest Egg.

Slater and Gordon, the law firm running the action, said that “potentially hundreds of thousands of NAB customers were sold junk credit card and personal loan insurance that was of little or no value and that many customers would never have been eligible to claim against”.

The class action follows allegations in the banking royal commission that NAB had engaged in unconscionable conduct and misleading and deceptive conduct.

“NAB will have to contact over 400,000 of the customers on their databases today, informing them that this class action exists, that the bank is accused of contravening the law and telling them what they have to do to be involved,” said Slater and Gordon’s Andrew Paull.

“If you are, or have been, a NAB customer in the past, keep an eye out for this letter, which will advise you of how to register your interest in participating in the class action.

“NAB knows that using pushy tactics and pressuring vulnerable customers into buying worthless insurance was wrong. They did it anyway and collected millions of dollars in unwarranted premiums in the process.”

A spokesperson from NAB responded to the allegations and subsequent notice, saying: “We are here for our customers and encourage them to contact NAB directly if they have any questions in relation to their CCI (credit card insurance) policies on 1300 168 909.

“Notices relating to the class action proceedings commenced by Slater and Gordon against National Australia Bank (NAB) and MLC Ltd (MLCL) have been distributed to potential class members as part of the court process.

“The notices provide those potential class members with information about the class action and their options.”

Are you a National Australia Bank customer? Will you take part in the class action? Are you surprised that this type of behaviour surfaced during the royal commission?

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    COMMENTS

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    Not a Bludger
    12th Aug 2019
    10:57am
    Appalling that our legal system allows this type of action.
    The only people to benefit will be ambulance chasers Slater & Gordon and, more importantly, the litigation funders.
    And, lawyers reckon that they are ethical - not!
    Karl Marx
    12th Aug 2019
    11:56am
    Appaling that you support the thieves called banks. This government & especially the current PM are just as guilty for supporting such criminal practices. Billion $ fines should be imposed & CEO's, directors & senior executives should be dragged before the courts to face justice.
    You accuse lawyers of being unethical but it is you & your ilk that encourage & support these criminal acts
    Eddy
    12th Aug 2019
    7:26pm
    NaB of course Slater & Gordon will benefit, they are doing the work and deserve appropriate remuneration, that is the nature of any well run business in our capitalist society. Class actions are a legal device to allow courts to hear myriad cases together rather than each litigant making individual cases. It just makes sense and saves huge sums in legal costs, a benefit to both plaintiff and defendant and not to the benefit of the lawyers. A small percentage of lawyers may indeed be unethical but after the RC it seems that a large percentage of banks may be unethical.
    VeryCaringBigBear
    12th Aug 2019
    11:17am
    Question to be asked is what is junk insurance?

    Because one is over 65 and can no longer be covered for loss of income is the whole insurance package junk?

    Did you know that now if you are over 65 you can no longer take out insurance against stolen credit cards, broken purchase etc because you aren't covered by the loss of income part of the package?

    Seems to me like if you not eligible for the whole package then it is junk.
    jaycee1
    12th Aug 2019
    11:35am
    Many years ago my husband had loss of income insurance with Westpac that was a waste of time. You are originally told it covers you for the time you are unable to work, then when you try to claim they say 'oh no, it's only for a short time [6 to 12 weeks] No good if you are off longer than 12 weeks!
    pedro the swift
    12th Aug 2019
    11:38am
    Good to see that the thieving banks may finally see justice done for their customers. No, I'm not a NAB customer, but I 'm sure the other banks were up to no good also.
    One point to remember is that ALL our monies are fake and banks and the economy is run on debt. Its all smoke and mirrors!
    Karl Marx
    12th Aug 2019
    11:59am
    It should go even further & drag the CEO, directors & senior executives before the courts to face criminal charges etc.
    Farside
    12th Aug 2019
    3:03pm
    and the auditors who signed off on these practices should professional sanction as well
    Karl Marx
    12th Aug 2019
    11:49am
    About time the government took control over these thrieves and threaten them with billion dollar fines for steling from it's citizens. Capitalism has become a blight on our democracy
    TREBOR
    12th Aug 2019
    12:19pm
    I would water that down and say that rape capitalism has become a blight on our society - capitalism has its place in amongst the pantheon of other systems that permit a nation to function adequately - and as I've said about either the extreme left of socialism or the extreme right of capitalism - the problems begin when one or the other holds too much power and control.

    That attitude that profit by any means is 'normal' and 'right' - nowhere more personified that in the past NSW 'premier' who sold off the F.4, and then bought himself and his wife 1/16 share of the company now taking profit from it. Apparently it is perfectly all right to hold an elected position and use that position to push through a 'policy' that will turn a free government utility into a cash-earning enterprise for yourself and a few mates, in return for which, you will be held up as an 'elder statesman'.

    Then we have $130Bn removed from the Tresuria Nacional and moved to an offshore tax haven to feed the retirement packaging of the incumbent and future and past politicians and a few of their chosen buddies.

    Yet these kinds have never been brought to trial for their blatant corruption and outright theft from the pockets of the ordinary people.

    Banana Republic much, complete with El Presidente and his brother and cronies robbing the Tresuria Nacional? If any of this happened in Central America or Africa, the UN would condemn it, the US would invade and remove a corrupt government... and at the very least the ill-armed peasants would take to the hills armed with machetes in open revolt.

    No wonder many think we are a stupid nation ripe for the plucking - we are plucked daily by our 'national leaders'.
    TREBOR
    12th Aug 2019
    12:21pm
    Adds:- Is it any wonder that 'business' follows the same path of daylight robbery?
    Karl Marx
    12th Aug 2019
    12:28pm
    No surprise at all Trebor & with total blessing & protection from the government corrupt businesses will flourish with immunity to any redress.
    Triss
    12th Aug 2019
    1:13pm
    And yet people still vote in multimillionaire candidates who have spent their lives stashing money away for themselves and can’t believe their luck when they’re given taxpayers’ funds to fill their coffers from.
    TREBOR
    12th Aug 2019
    1:30pm
    Nothing like another free ride for life...
    Farside
    12th Aug 2019
    7:17pm
    "And yet people still vote in multimillionaire candidates" ... oh to be an aspirational voter!
    TREBOR
    12th Aug 2019
    11:16pm
    Might work on being a candidate - no connection with any party - no connection with any business - no nothing - a pure Independent and an honest broker. Won't happen here - they're addicted to the Nationals.

    Might have a shot at council next year... same portfolio.
    suzi
    12th Aug 2019
    12:00pm
    Westpac Bank also has done the same thing, with credit card insurance, hopefully this also will be addressed suzi
    VeryCaringBigBear
    12th Aug 2019
    1:56pm
    You did have a choice whether you took it out or not so why didn't you do your homework and decided for yourself whether it was worth it or not?
    Karl Marx
    12th Aug 2019
    2:29pm
    VCBB, very harsh, why should anyone have to be checking & double checking everything when we put our trust into the experts who are hell bent on defrauding it's clients.
    Many people do check & compare but it's when you go to claim that they say you aren't covered.
    banks also had a choice & the choice they made was to rip of clients knowing that the government will protect them & being dragged before the courts to answer for their crimes wasn't going to happen.
    I hope all your choices are the right ones but remember these institutions can change the T&C anytime they want
    Farside
    12th Aug 2019
    3:09pm
    Karl Marx asks "why should anyone have to be checking" .... lions and lambs, simple as that.
    VeryCaringBigBear
    12th Aug 2019
    4:50pm
    Gee I must be stupid then as I double check everything anyone tells me and then make a decision. I decided that such insurance was not of value to me. I don't trust the so called experts at all.
    Suze
    16th Aug 2019
    7:42am
    I agree with you VCBB
    I too do not trust the eggspurts
    Cheezil61
    12th Aug 2019
    12:29pm
    Wow Insurance companies need to be the next ones in scrutiny from Royal Commission because how many of them sell dodgey policies but wont pay legit claims i wonder (hhmm experience has taught me to avoid travel insurance in future)? Also wondering how many resi's (or victims of NAB) will receive these notices in the mail & disregard thinking they are scammers etc??
    Rae
    12th Aug 2019
    1:12pm
    I was a MLC customer for decades and they lied about the outcomes and charged far too much. If I receive a letter I will certainly join the action.
    Jenny
    12th Aug 2019
    1:47pm
    I had a small legacy following the death of my parents. I put it into a superannuation fund with AMP for ten years. Lo and behold, when it matured and I cashed it in, I received the same amount back as I had put in!
    Jenny
    12th Aug 2019
    1:53pm
    Sorry, should have been superannuation bonds.
    TREBOR
    12th Aug 2019
    11:17pm
    Wow...
    Jenny
    13th Aug 2019
    12:01am
    Fees, etc.

    13th Aug 2019
    8:13am
    If you live near a smaller community based bank, you might use that. Govt insurance applies to all financial banking institutions. Credit unions are good as well, they do give you credit/debit cards and sometimes offer a bit more for term deposits.