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ASIC Takes Legal Action Against NAB for Financial Hardship Response Delays

Regulator Targets NAB Over Alleged Delays in Assisting Customers Facing Hardship

ASIC Takes Legal Action Against NAB for Financial Hardship Response Delays?w=400

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In November 2024, the Australian Securities and Investments Commission (ASIC) initiated civil penalty proceedings against National Australia Bank (NAB) for failing to meet legally mandated deadlines in responding to financial hardship applications.
Between 2018 and 2023, NAB and its unit AFSH Nominees allegedly did not respond within the required 21-day period to 345 applications from individuals facing severe personal and financial difficulties.

ASIC's Chair, Joe Longo, stated that NAB's failures likely exacerbated the hardships of affected individuals. This legal action follows ASIC's comprehensive review of major lenders' financial hardship practices, which identified significant deficiencies. The regulator is seeking declarations, penalties, and public orders against NAB and AFSH.

For borrowers, especially those with poor or limited credit histories, timely responses to financial hardship applications are crucial. Delays can lead to increased financial strain, accumulation of fees, and potential damage to credit scores. This case underscores the importance of lenders adhering to regulatory requirements and the need for consumers to be aware of their rights when facing financial difficulties.

Borrowers experiencing financial hardship should:

  • Promptly communicate with their lenders about their situation.
  • Keep detailed records of all communications and responses.
  • Seek assistance from financial counselors or consumer protection agencies if responses are delayed or inadequate.

Understanding and asserting one's rights can help mitigate the adverse effects of financial hardship and ensure fair treatment by financial institutions.

Published:Friday, 26th Sep 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Inflation:
The rate at which the general level of prices for goods and services rises, eroding purchasing power.


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