In November 2017 NAB sacked or disciplined over 50 of its banking staff for breaching its home loan lending policies. NAB admitted that as a result of these breaches, thousands of mortgages it issued to customers may be based on inaccurate information.
This followed a report from investment bank UBS in September 2017 which found that Australian banks have issued about $500 billion of mortgage debt based on inaccurate or unreliable information about the borrower’s ability to make repayments. That equates to close to one-third of home loans.
NAB’s misconduct follows a string of scandals in Australia's banks over recent years, and a recent debate about how thoroughly banks verify the information provided by customers.
Home loans issued by NAB could be in breach contraventions of the responsible lending provisions of National Consumer Credit Protection Act 2009 (Cth) (the National Credit Act).
The National Credit Act provides consumer protections to ensure that credit providers make reasonable inquiries about a borrower's financial situation and assess whether a loan contract will be unsuitable for the borrowers.
NAB says it wrote to affected customers, requesting they participate in a review of their loan. It told the corporate regulator ASIC about the problems in late 2015.
If you are you struggling to repay or have you defaulted a loan from NAB or were offered a loan review by NAB, you may have a claim and you should get advice about your rights.
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