NAB is sued for allegedly charging the wrong fees to customers almost 200,000 times
- NAB is accused of slugging 5000 customers fees between 2007 and 2019
- The banking giant allegedly charged $1.80 for payments to other NAB accounts
- ASIC, Australia’s financial watchdog, has now sued the Big Four bank
National Australia Bank has been sued for allegedly charging customers the wrong fees almost 200,000 times.
NAB has been accused of slugging some 5000 customers fees when they were not meant to be charged between July 20, 2007 and February 22, 2019.
ASIC, Australia’s financial watchdog, has now sued the Big Four bank, claiming it charged 4874 personal bank accounts at least 195,305 – adding up to $365,454.
NAB has been accused of slugging some 5000 customers fees when they were not meant to be charged between July 20, 2007 and February 22, 2019
The banking giant allegedly charged $1.80 for payments to other NAB accounts, and $5.30 for payments to accounts at another financial institution, 9News reports.
ASIC claimed NAB acted in a misleading and deceptive way by charging the fees when it was not entitled to do so.
‘NAB had identified that it was charging periodic payment fees in error to both personal and business banking customers by the end of October 2016,’ ASIC said in a statement.
‘However, it took NAB until July 2018 to lodge a breach report with ASIC and notify customers of the overcharging, and to begin remediating customers.’
It has been further alleged that NAB continued to wrongly charge customers fees even after the mistake was uncovered.
‘ASIC alleges that between at least January 2017 and July 2018, NAB continued to charge customers periodic payment fees even though it knew overcharging was occurring and did not have systems to prevent those fees from being charged incorrectly,’ ASIC alleges.
‘NAB did not change its systems to prevent overcharging until 22 February 2019, when it ceased to charge those fees to customers.’
Customers have now been repaid more than $8million.
An NAB spokesperson acknowledged that it charged some customers incorrectly for periodical payment fees ‘because staff members selected an incorrect fee when setting up a payment arrangement for a customer’.
The banking giant allegedly charged $1.80 for payments to other NAB accounts, and $5.30 for payments to accounts at another financial institution