Hundreds of thousands of NAB customers who were unreasonably sold consumer credit insurance on their credit card or personal loans will be compensated nearly half a billion dollars.
Following consumer class action raised off the back of revelations from the banking Royal Commission, the major bank and its subsidiary MLC have agreed to a $49.5 million settlement, according to the law firm Slater and Gordon.
“A $49.5 million settlement is a terrific result for the tens of thousands of people who fall within the class,” said Slater and Gordon practice group leader Andrew Paull.
The class action was filed by Slater and Gordon in late September last year over allegations that people were sold – but were ineligible for or unlikely to benefit from – consumer credit insurance (CCI).
The class action also alleged that NAB representatives acted misleadingly and deceptively in how they sold CCI to customers.
Am I eligible for the payments?
According to Slater and Gordon, it’s an ‘open class action’, meaning that as long as you meet all the conditions, you can be included.
If you have paid a premium for NAB Credit Card Cover since 26 September 2012, or if you’ve paid a premium for NAB Personal Loan Cover since 13 June 2013, this might be you – although you also have to satisfy one other condition out of a list of 11, set out on Slater and Gordon’s website here.
“If any NAB customers think that they have been paying for either NAB Credit Card Cover or NAB Personal Loan Cover, we’d encourage them to register their details on our website,” Paull said.
Class action members will receive a court notice about the proposed settlement “shortly”.
The settlement will be presented to the Federal Court for its approval.
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