Slater and Gordon have filed class action proceedings in the Federal Court against NAB and MLC due to a contravention of the ASIC Act.
The law firm has launched a consumer credit insurance action alleging MLC and NAB engaged in unconscionable conduct in contravention of the Australia Securities and Investment Commission Act by selling insurance to card holders who were ineligible to claim under the terms of the policy.
Class Actions Principal Andrew Paull said all the claimants had a NAB credit card and were offered insurance despite being highly unlikely that they would benefit.
“Most were existing NAB customers and the bank should have known the insurance was likely to be of little or no benefit to them. Despite knowing this, NAB have continued to push the insurance widely, reaping millions in premiums while doing so,” said Mr Paull.
Mr Paull said most people were sold insurance over the phone and were not given a reasonable opportunity to understand the policy.
“In the case of the life cover, the policy was of minimal value to many customers. NAB admitted as much in the royal commission.
“They have taken advantage of hundreds, potentially thousands of their loyal customers,” he said.
Mr Paull said Slater and Gordon believed these practices amounted to unconscionable conduct in breach of section 12CB of the ASIC Act.
“We believe NAB’s and MLC’s conduct falls well short of the standard of behaviour the industry expects.
“In short, they have taken advantage of people knowing that they can’t cover them,” he said.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
Magellan chairman and CIO Hamish Douglass has said he’s not afraid of missing out on a “short-term market rally” and that mutant virus...