In Australian Securities and Investments Commission v National Australia Bank [2025] FCA 947 the Federal Court of Australia declared that over certain periods, National Australia Bank (NAB) and its subsidiary, AFSH Nominees Pty Ltd contravened section 72(4) of the National Credit Code on multiple occasions by failing to give the debtor a Response notice in respect of the NAB hardship notices, within the 21-day timeframe required by section 72(5) of the Code.
The Federal Court ordered NAB and its subsidiary to pay a pecuniary penalty of $15.5 million for failing to respond to customers facing hardship. Background.
Separately the Australian Banking Association (ABA) has released an updated industry guideline outlining best practice for banks assisting customers in financial difficulty.
Key changes include a stronger emphasis on early identification of financial stress, improved communication strategies, and tailored support options.
The guideline encourages banks to proactively engage with customers showing signs of hardship and to offer assistance that reflects individual circumstances.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
