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NAB (ASX: NAB) has reached a settlement with class action law firm Slater & Gordon, paying $49.5 million toward customer remuneration.
The class action saw Slater & Gordon allege that NAB sold "worthless" credit card insurance (CCI) to customers.
The law firm claimed most people were sold the insurance over the phone and were not given a reasonable opportunity to understand the terms and conditions of the policy.
NAB chief legal and commercial counsel Sharon Cook says the settlement was the right way forward in this situation.
"The settlement is the right thing to do for our customers and shareholders," says Cook.
"As we have said, we can only move forward if the 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."
NAB no longer sells the controversial CCI products through any of its banking channels, and has implemented a remediation program for those who bought the CCI products.
Settlement payments to and individual class members will be managed and determined by Slater & Gordon.
Shares in NAB are down 0.53 per cent to $26.27 per share at 10.19am AEDT.
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