Are you one of the thousands of Australians to receive a bumper payout? NAB repays customers $ 49.5 million
Tens of thousands of National Australia Bank customers reportedly sold “junk” credit cards and personal loan insurance policies were $ 45 million richer.
More than 45,000 Australians – mostly students, retirees and insecure workers – received their share of a $ 49.5 million settlement against NAB and its subsidiary MLC Limited after a lengthy class action procedure, first launched in September 2018.
Slater and Gordon led the lawsuit on behalf of customers who sold worthless insurance. It is one of the four class actions in its Get your insurance back campaign.
Other banks, Slater and Gordon, have brought collective actions against the Federal Court against CommBank, ANZ, and Westpac, among others, for selling junk consumer credit insurance.
Slater and Gordon confirmed that the worthless insurance policies sold in the NAB case included people with disabilities, a chronic illness, the unemployed or non-entitled persons.
More than 45,000 Australians received their share of a $ 49.5 million settlement against NAB and its subsidiary MLC Limited after lengthy class action proceedings
Many of the victims believed the insurance was mandatory or free, and some of them didn’t even know they had it, the company said.
Slater and Gordon’s senior associate, David Barda, said the highest amount received was $ 36,000, averaging between $ 1,000 and $ 2,000.
About 5,000 class action members are yet to receive their share of the remaining $ 4.9 million in compensation, and will do so in the coming days.
“There are several administrative reasons why the remaining thousands will receive compensation in a second round. This could include things like incorrectly entering bank details, closing bank accounts etc. And refusing the transaction at the recipient’s end, ”he said.
“Slater and Gordon will go through trials in the coming months to ensure that the compensation finds its way to the owners.”
Mr Barda added that it was the first compensation to come from the Royal Banking Commission, which came at a critical time for many Australians, because they lost jobs or suffered difficulties due to COVID-19.
“We are happy to finally mark the end of this class action against NAB with a positive outcome for tens of thousands of Australians who will wake up today with a little extra cash in their bank accounts,” said Barda.
“It shows how important class actions are to ordinary people who may not have had the resources to take on – or make their voices heard – a big company on their own.”
Federal Court Justice Lee approved the settlement with NAB and MLC Limited and payments were accepted from July 9 to May 8.
“Class actions are often the only way people have the means to tackle big companies when they are hurt or scammed; The NAB class action has led nearly 50,000 people today to receive what they owe them lawfully, without having to do much more than fill in a few short forms, ”Barda said.
Slater and Gordon David Barda senior associate said the highest amount received was $ 36,000, averaging between $ 1000 and $ 2000
The members of the class action did not have to fight in court or take a huge financial risk, and are still justified at the end of the day.
“Anyone who thinks they have been defrauded by their bank is urged to register for the class action.”
In a statement In May, Sharon Cook, NAB’s Chief Legal and Commercial Counsel said, “We are pleased with the Federal Court’s decision and can resolve this issue for our customers and shareholders.
“As we have recognized, it is important to resolve past issues so that we can restore trust with our customers and the community.”
The settlement comes less than six months after NAB has been named the least trusted bank in the country based on the explosive report by the royal banking commission.
National Australia Bank mistrust skyrocketed from 36.9 percent before the report was published earlier this year to 53.7 percent after the final findings were announced
Daily Mail Australia reported in February that Australia’s four major banks were destroyed by Commissioner Kenneth Hayne and suffered a severe drop in their Net Trust Score (NTS) as a result.
NAB was the heaviest hit of the four according to the then-latest Roy Morgan NTS survey, which had measured banks’ confidence since 2017 and researched the implications of the report.
Roy Morgan conducted a survey in January before the report became public and another in the week after the report was released.
The Commonwealth Bank topped the index in January, recording the lowest level of confidence and the highest level of distrust.
NAB quickly claimed the spot after the publication of Hayne’s scathing report.
Their suspicion skyrocketed from 36.9 percent before the report was released to 53.7 percent after the final findings were announced.
Their confidence level also fell from 18.5 percent to 11.5 percent, achieving the worst Net Trust Score of the banking sector of -42.2 percent.
“This is the highest mistrust we’ve ever seen for a banking brand in Australia,” said Michele Levine, CEO of Roy Morgan.
The other three major banks had NTS scores in the minus 20s.
Ms Levine said the results were surprising and questioned the banks’ future amid reluctance.
“This low confidence sets a new benchmark for Australian banks. The real question is what happens next, ”she said.
“Without trust, there is no civil society. The Australian people have now expressed their anger and mistrust of Australian banks. It is now time to rebuild that confidence.
Ms. Levine added that the Australian public deserved a strong and reliable banking system.
“Business leaders at these banks face the biggest challenge in their careers: reversing huge mistrust in their brands,” she said.
“Over time, these directors on the boards need truly independent reporting on their brand’s trust – and more importantly, their mistrust.
“Rather than seek solace in the relatively high level of satisfaction that banks still enjoy with their key customers, company directors need to investigate the dangerous gut of suspicion.”
The settlement comes less than six months after NAB has been named the least trusted bank in the country based on the explosive report by the Royal Banking Commission