ASIC Takes Legal Action Against NAB for Financial Hardship Response Delays

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.