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National Australia Bank accused of wrongly charging fees to customers almost 200,000 times

Rebecca Le MayNews Corp Australia
The corporate watchdog is suing National Australia Bank for allegedly wrongly charging customers fees.
Camera IconThe corporate watchdog is suing National Australia Bank for allegedly wrongly charging customers fees. Credit: News Corp Australia

The corporate watchdog is suing National Australia Bank for allegedly wrongly charging customers periodic payment fees almost 200,000 times over four years.

The Australian Securities and Investments Commission said it had begun proceedings in the Federal Court claiming the bank charged the fees when it was not contractually entitled to on at least 195,305 occasions between February 2015 and February 2019.

The fees totalled $365,454 and were charged to 4874 personal banking customers and 913 business banking clients, ASIC alleges.

The regulator said NAB had identified it was charging the fees in error by the end of October 2016 but did not lodge a breach report with ASIC, notify customers about the overcharging and begin paying them back until July 2018.

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ASIC further alleges that between at least January 2017 and July 2018, NAB knowingly continued the overcharging and did not have systems in place to prevent it happening until February 2019.

The watchdog accuses NAB of making false or misleading representations that it was contractually entitled to charge the fees when it was not, engaging in misleading or deceptive conduct, engaging in unconscionable conduct and contravening its obligation as an Australian financial services licensee to comply with financial services laws.

It also says NAB failed to ensure that financial services covered by its licence were provided efficiently, honestly and fairly.

The matter will be listed for a case management hearing on a date to be determined by the court.

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