One in 50 ‘fleeced’ by 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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Written by Leon Della Bosca

Publisher of YourLifeChoices – Australia's most-trusted and longest-running retirement website. A trusted voice on Australia's retirement landscape, including retirement income and planning, government entitlements, lifestyle and news and information relevant to Australians over 50. Leon has worked in publishing for more than 25 years and is also a travel writer and editor, graphic designer and photographer.

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