NAB has agreed to pay $49.5 million to settle a class action lawsuit over the sale of junk credit card and personal loan insurance to tens of thousands of customers.
The legal case, filed by Slater & Gordon in September last year against NAB and MLC in the Federal Court of Australia, was related to the sale of two consumer credit insurance (CCI) products, NAB Credit Card Cover (NCCC) and NAB Personal Loan Cover (PLC).
“The settlement is the right thing to do for our customers and shareholders,” said Sharon Cook, NAB chief legal and commercial counsel. “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. 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 $49.5 million payment is subject to approval of the Federal Court of Australia, with NAB already making a provision for the amount in its September 2019 full year financial statements.