Regulatory Alerts2025-08-13
Federal Court orders NAB and AFSH to pay $15.5 million penalty for failing to respond to customer hardship applications
The Federal Court has ordered National Australia Bank and its subsidiary AFSH Nominees to pay a $15.5 million pecuniary penalty for breaching the National Credit Code by failing to respond to 345 customer hardship applications within the required 21-day timeframe. ASIC Deputy Chair Sarah Court emphasized that these systemic failures, caused by staff incorrectly using a rejection button, left consumers unaware of outcomes during challenging financial periods. As part of the judgment, the institutions must publish adverse publicity notices on their websites and provide copies to all affected customers.
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