Hundreds of victims of domestic violence were let down by a major bank, according to ASIC.

A major Australian bank is facing legal action from the financial watchdog for allegedly neglecting to respond to hundreds of hardship support applications. These applications, which were submitted between 2018 and 2023, included requests from domestic violence victims and individuals dealing with serious illnesses.

According to the Australian Securities and Investment Commission (ASIC), National Australia Bank and its subsidiary AFSH Nominees failed to respond to 345 hardship applications within the required timeframe of 21 days. This failure to provide timely assistance has prompted ASIC to take action against the bank, seeking declarations, financial penalties, and adverse publicity orders.

In a statement, ASIC Chair Joe Longo expressed concern for the affected customers, stating that NAB's actions likely worsened their already challenging situations. He also noted the increase in financial hardship requests among customers due to rising living costs.

Longo emphasized the importance of lenders fulfilling their obligations to assist customers experiencing financial difficulty, stating that it is a top priority for ASIC in 2024. This legal action follows a similar case initiated by ASIC against Westpac in September last year.

In response to the lawsuit, NAB acknowledged the issue and expressed regret for not being there for their customers in need. The bank's group executive for customer and corporate services, Sharon Cook, stated that they had reported the matter to ASIC in October last year and are determined to provide support to the affected customers.

Cook also mentioned that NAB has been working on a new approach to assisting customers in financial difficulty, taking into account feedback from consumer advocates. The bank and its subsidiary are currently reviewing the details of the proceedings brought by ASIC and have assured full cooperation with the regulator.

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