NAB settles credit card insurance class action for $50 million

NAB settles credit card insurance class action for $50 million

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.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

The Star “cleansing” continues with more management resignations

The Star “cleansing” continues with more management resignations

Evidence given today at a review into casino and resort operator Th...

Drone tech company Aerologix flying high after closing $4.2 million raise

Drone tech company Aerologix flying high after closing $4.2 million raise

Sydney-based drone tech company Aerologix is taking its operations ...

Spilling into the market: Ulu Hye cracks deal with Woolworths

Spilling into the market: Ulu Hye cracks deal with Woolworths

Plant-based milk start-up Ulu Hye has announced it will be launchin...

Incitec Pivot to split explosives, fertilisers businesses after record profits

Incitec Pivot to split explosives, fertilisers businesses after record profits

Following a record performance for the first half, Incitec Pivot (A...