Are you due cash back? NAB bank will pay $49.5MILLION in compensation to 400,000 customers who were sold ‘junk insurance’
- NAB to compensate 400,000 customers after a class action on ‘junk insurance’
- Law firm Slater & Gordon and NAB agreed to a the huge $49.5million settlement
- The class action alleged NAB had sold ‘junk insurance’ to vulnerable customers
- After settlement was announced NAB spokeswoman said it was ‘right thing to do’
National Australia Bank will compensate 400,000 customers tens of millions of dollars after losing a class action claiming they sold ‘junk insurance’.
Law firm Slater and Gordon launched the class action against NAB and its subsidiary MLC Limited in 2018 and all agreed to a $49.5million settlement on Wednesday.
Earlier in 2019 the corporate regulator found the type of insurance in question, consumer credit insurance, was of ‘extremely poor value for money’.
Slater and Gordon Practice Group Leader Andrew Paull told Daily Mail Australia the law firm was happy to have settled the historic class action.
National Australia Bank has agreed to compensate 400,000 customers after settling a class action claiming they sold ‘junk insurance’ for $49.5million (file photo)
‘Slater and Gordon is extremely proud to have settled the first consumer class action arising out of the Banking Royal Commission,’ Mr Paull said.
‘A $49.5 million settlement is a terrific result for the tens of thousands of people who fall within the class.
‘If any NAB customers think that they have been paying for either NAB Credit Card Cover or NAB Personal Loan Cover, we’d encourage them to register their details on our website.’
The class action stated NAB had engaged in ‘unconscionable conduct’ by selling consumer credit insurance (CCI) to customers who were ineligible or unable to claim the benefits.
They included casual workers, pensioners, critically ill and unemployed customers.
The class action also alleged the bank was both misleading and deceptive when offering the insurance to customers.
NAB Chief Legal and Commercial Counsel Sharon Cook told Daily Mail Australia the settlement was the ‘right thing to do’.
‘As we have said, we can only move forward if we deal with the past, so that we can earn trust among customers and the broader community and grow confidence in the future of NAB,’ she said.
‘It is important to note NAB no longer sells CCI products through any of its banking channels, and has implemented a remediation program for CCI customers.’
The proposed settlement will be presented to the Federal Court for approval.
Class members can expect to receive a court notice with further details on the proposed settlement.
NAB Chief Legal and Commercial Counsel Sharon Cook told Daily Mail Australia the settlement was the ‘right thing to do’ for the bank to start building trust with its customers again