Almost half a million Australians are expected to receive a notice from the Federal Court advising that they may be eligible for the NAB consumer credit class action.
The class action, launched by Slater and Gordon, alleged that NAB and MLC 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.
The law firm alleged that these credit cards were of little or no value and that many customers would never have been eligible to claim against.
The Federal Court granted leave to Slater and Gordon to expand the claim beyond credit card customers to include people who were sold a similar type of insurance for personal loans.
Practice group leader Andrew Paull said this would be one of the largest court-ordered notices in Australia.
“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,” Mr Paull said.
Mr Paull said all NAB customers should keep an eye out for a letter advising them on how to participate.
“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.”
This is the second class action the major bank is facing as NAB-owned super fund NULIS Nominees is also facing a class action in relation to excess fees charged to members of the fund.
NAB confirmed that notices had been distributed to potential class members as part of the process with information about the case and their options.
"We are here for our customers and encourage them to contact NAB directly if they have any questions in relation to their CCI policies. As the matter is now before the court, we are unable to comment further on the class action,” said a NAB spokesperson.
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]