We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
ASIC has leveled charges against NAB, alleging that the bank did not meet the standard 21-day timeframe required for acknowledging hardship pleas. Specifically, the watchdog has highlighted 345 instances where NAB failed to respond to such requests, with 320 of these cases lacking a lawful reply altogether. This constitutes over 400,000 cumulative days of delay, according to ASIC's calculations.
Joe Longo, the ASIC chair, emphasized the significance of prompt responses to hardship applications, especially for individuals facing significant challenges such as severe health issues, domestic violence, or the financial impact of the COVID-19 pandemic. "NAB unlawfully failed to respond to their customers’ appeal for help when they needed them most," Longo asserted.
This scrutiny of NAB follows a similar lawsuit against Westpac earlier in September 2023. Westpac was accused of similar misconduct involving failure to act within the National Credit Code's deadlines, affecting over 435 hardship notifications.
The regulatory body released an insightful report in May pinpointing banks’ lackadaisical attitude toward implementing effective hardship policies. Alan Kirkland, ASIC’s head of enforcement, stated, "Many lenders aren’t taking their customers’ unique circumstances into account,” highlighting an often criticized "cookie cutter approach" in this realm.
In response to these allegations, NAB's executive Sharon Cook offered an apology, acknowledging the bank's shortcomings during crucial times for their clients. "We are focused on ensuring these customers receive the support they need," she mentioned, adding that NAB is revising its approach towards financial hardship cases, taking cues from ASIC’s nationwide findings.
The legal claims specify lapses between July 2019 and July 2022, featuring scenarios such as a mortgage applicant adversely affected by COVID-19, who endured no income due to quarantine restrictions. Another instance involved an applicant struggling after leaving an abusive relationship, signifying the personal challenges underlying these hardships.
These cases challenge assumptions about major financial institutions adequately supporting Australia's most vulnerable population segments during their utmost time of need. With NAB and Westpac both under fire, this situation raises pressing concerns about how the country's biggest lenders address financial hardship.
For more context, the original insights on these developments were reported by Neale Prior and Jackson Hewett from The Nightly on November 18, 2024.
Published:Tuesday, 19th Nov 2024
Source: Paige Estritori
| AI in Financial Planning: Unlocking Potential with Prudence 21 Nov 2024: Paige Estritori Artificial Intelligence (AI) has rapidly become a focal point in modern financial planning, offering the potential to transform how advisers interact with clients. By providing automated solutions for routine tasks and analyzing vast data sets, AI promises increased efficiency and more personalized financial recommendations. - read more |
| Financial Advisory Expansion: Balancing Growth and Regulatory Challenges 20 Nov 2024: Paige Estritori The financial advisory sector in Australia is poised for significant expansion, with the potential to extend advisory services to an additional 650,000 clients. This promising development hinges on resolving existing regulatory barriers. A detailed analysis by Empower Business Advisory, sponsored by Colonial First State, underlines this potential shift in the industry landscape. - read more |
| Aussie Homeowners Show Resilience Amidst Rising Interest Rates 20 Nov 2024: Paige Estritori Amid the global economic shifts, Australian homeowners, notably exposed to fluctuating interest rates, have defied pessimistic predictions and demonstrated resilience. Unlike many countries, most Australian mortgages are subject to variable interest rates, which heightens sensitivity to cash rate changes. - read more |
| NAB Faces Legal Action for Delayed Hardship Responses 19 Nov 2024: Paige Estritori In a recent development within the financial sector, the National Australia Bank (NAB) finds itself embroiled in a legal dispute initiated by the Australian Securities and Investments Commission (ASIC). At the center of the controversy are allegations that the bank failed to timely respond to hundreds of loan hardship applications from its customers. - read more |
| The Pros and Cons of Owning a Sport Motorbike as an Aussie Female Rider When it comes to motorcycles, there are many different types to choose from. One type that has gained popularity among Australian female riders is the sport motorbike. In this article, we will explore what a sport motorbike is, why some female riders prefer them, and weigh the pros and cons of owning one. - read more
|
| Navigating Aussie Weather: Motorcycle Maintenance for Every Season The importance of motorcycle maintenance cannot be understated, especially when faced with the unique and shifting weather conditions that span our vast continent. From the scorching heat of the Outback to the wet and windy coastline, traversing Australia on two wheels requires your machine to be as adaptable as you are. - read more
|
| From Dream to Reality: Steps to Take Before Applying for Your Motorcycle Loan A sense of boundless excitement often accompanies the thought of buying your very first motorcycle. It's more than just a purchase; it's an entry pass to a lifestyle charged with freedom, wind in your hair, and the open road calling your name. The thrill of ownership however, comes with its fair share of responsibilities, chief among them being the financial commitment it demands. - read more
|
| 5 Essential Tips for Comparing Motorcycle Loans Without Harming Your Credit Score When you're in the market for a new motorcycle, the thrill of choosing your next ride can be temporarily overshadowed by the financing process. Your credit score is a critical factor in securing a loan with favorable terms, and it's natural to worry about potential impacts while shopping around for the best deal. - read more
|
|
Motorcycle Financing 101: How to Save Smart and Borrow Wisely Imagine the thrill of cruising down Australia's scenic coastlines or thundering through its vast outback with nothing but the open sky above and the roar of the engine beneath. This dream of bike ownership is an alluring prospect for many, promising a sense of freedom that is hard to find elsewhere. - read more
|
|
The Ultimate Guide to Financing a Motorcycle in Australia Financing a motorcycle in Australia can be a helpful option for individuals who want to own their own bike but may not have the immediate funds to do so. Motorcycle financing allows you to spread out the cost of the purchase over a period of time, making it more affordable and manageable. - read more
|
|
The Top 5 Most Popular Motorcycles in Australia and Why They're Great Choosing a motorcycle can be an exciting, but overwhelming experience. With so many options on the market, it can be difficult to know where to start. That’s why we’ve compiled a list of the top 5 most popular motorcycles in Australia to help make your decision easier. - read more
|
|
Avoiding Common Pitfalls in Motorcycle Financing: What to Watch Out For Motorcycle financing is a convenient way for enthusiasts to purchase their dream bikes without having to pay the full cost upfront. However, understanding the potential pitfalls and avoiding them is crucial to ensure a smooth and cost-effective financing experience. - read more
|