ASIC has commenced proceedings in the Federal Court against NAB alleging that it charged fees for making periodic payments when it was not entitled to.
ASIC alleges that, between 25 February 2015 and 22 February 2019, NAB charged fees for periodic payments on at least 195,305 occasions totalling $365,454 when it was not contractually entitled to do so. The fees were charged to 4,874 personal banking customers and 913 business banking customers.
ASIC alleges that by charging the fees – or by notifying customers of the charging of each fee via a bank statement – NAB made false or misleading representations that it was contractually entitled to charge the fees when it was not; engaged in misleading or deceptive conduct; and contravened its obligation as an Australian financial services licensee to comply with financial services laws.
“NAB had identified that it was charging periodic payment fees in error to both personal and business banking customers by the end of October 2016. However, it took NAB until July 2018 to lodge a breach report with ASIC and notify customers of the overcharging, and to begin remediating customers,” ASIC said.
“ASIC alleges that between at least January 2017 and July 2018, NAB continued to charge customers periodic payment fees even though it knew overcharging was occurring and did not have systems to prevent those fees from being charged incorrectly. NAB did not change its systems to prevent overcharging until 22 February 2019, when it ceased to charge those fees to customers.”
The proceeding will be listed for a case management hearing on a date to be determined by the court.