The notices relate to NAB’s alleged failure to disclose, or to accurately disclose, credit limit information in response to four separate requests from different CDR-accredited providers acting on behalf of consumers, the Australian Competition and Consumer Commission (ACCC) said in a statement on Thursday.
The CDR is a government-backed program that allows Australians to securely share their data held by businesses, giving them greater control and the ability to find better deals or manage finances more effectively.
“Poor data quality prevents consumers from experiencing the full benefits of the CDR. When banks or energy retailers don’t provide accurate data, consumers can’t take advantage of CDR products and services to compare products, find better deals, manage their finances or make informed decisions about product switching,” ACCC deputy chair Catriona Lowe said.
In this case, inaccurate credit card limit data affected the services of several fintech firms, including some offering mortgage broking tools that use CDR data to simplify and speed up loan applications.
NAB’s penalty payment is the largest to date for alleged CDR rule breaches. The bank cooperated fully with the ACCC’s investigation and has since corrected the data quality issues identified.
Data holders in banking have had several years to meet their CDR obligations, but as the program grows, ensuring data quality remains a key focus for the ACCC.
Between January and June 2024, more than 530,000 consumers used CDR products and services in banking and energy sectors, marking a 135 per cent increase from the previous six months, with about 582 million consumer data requests made during this period.
Lowe warned: “All CDR participants are reminded that failure to comply with the CDR rules will result in scrutiny by the ACCC and may result in enforcement action.”
Responding to the ACCC’s statement, NAB chief digital officer Sujeet Rana: “NAB has long been an active participant in the consultation and development of the Consumer Data Right, including as an accredited data recipient. We see CDR as a safe and secure way that consumers can share their data with accredited recipients and we continue to explore new use cases that can help to deliver better experiences for customers.
“NAB has made a significant investment to deliver the complex CDR requirements as well as investing resources to develop our capabilities to deliver new innovations.
“We have fully cooperated with the ACCC’s review and have resolved the data quality error identified. We appreciate and recognise the importance of ensuring we are meeting the standards necessary and expected under the regulations.”
