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A statistical measure of the dispersion of returns for a given security or market index. Higher volatility indicates higher risk.
NAB Faces Legal Action for Delayed Hardship Responses
NAB Faces Legal Action for Delayed Hardship Responses
ASIC has leveled charges against NAB, alleging that the bank did not meet the standard 21-day timeframe required for acknowledging hardship pleas. Specifically, the watchdog has highlighted 345 instances where NAB failed to respond to such requests, with 320 of these cases lacking a lawful reply altogether. This constitutes over 400,000 cumulative days of delay, according to ASIC's calculations.
Joe Longo, the ASIC chair, emphasized the significance of prompt responses to hardship applications, especially for individuals facing significant challenges such as severe health issues, domestic violence, or the financial impact of the COVID-19 pandemic. "NAB unlawfully failed to respond to their customers’ appeal for help when they needed them most," Longo asserted.
This scrutiny of NAB follows a similar lawsuit against Westpac earlier in September 2023. Westpac was accused of similar misconduct involving failure to act within the National Credit Code's deadlines, affecting over 435 hardship notifications.
The regulatory body released an insightful report in May pinpointing banks’ lackadaisical attitude toward implementing effective hardship policies. Alan Kirkland, ASIC’s head of enforcement, stated, "Many lenders aren’t taking their customers’ unique circumstances into account,” highlighting an often criticized "cookie cutter approach" in this realm.
In response to these allegations, NAB's executive Sharon Cook offered an apology, acknowledging the bank's shortcomings during crucial times for their clients. "We are focused on ensuring these customers receive the support they need," she mentioned, adding that NAB is revising its approach towards financial hardship cases, taking cues from ASIC’s nationwide findings.
The legal claims specify lapses between July 2019 and July 2022, featuring scenarios such as a mortgage applicant adversely affected by COVID-19, who endured no income due to quarantine restrictions. Another instance involved an applicant struggling after leaving an abusive relationship, signifying the personal challenges underlying these hardships.
These cases challenge assumptions about major financial institutions adequately supporting Australia's most vulnerable population segments during their utmost time of need. With NAB and Westpac both under fire, this situation raises pressing concerns about how the country's biggest lenders address financial hardship.
For more context, the original insights on these developments were reported by Neale Prior and Jackson Hewett from The Nightly on November 18, 2024.
Published:Tuesday, 19th Nov 2024
Source: Paige Estritori
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