The Australia Securities & Investments Commission has filed a lawsuit against the National Australia Bank for charging its customers over services it did not offer.
ASIC accused NAB of «unconscionable conduct» from at least May 2018 to February 2019, when it knowingly charged customers for services it did not provide backed by fee disclosure statements that were defective. The regulator alleges that broader «fee for no service» behavior and issuance of defective statements had occurred since December 2013.
«When the Fees for No Service misconduct is coupled with Fees Disclosure Statements inadequacies or failings, customers are potentially placed in a more disadvantageous position,» said ASIC deputy chair Daniel Crennan.
«The customer may not therefore have been provided with the opportunity to know whether they have received the services for which they have paid or the amount of fees charged to them.»
A$10 Billion (Potentially)
In its statement, ASIC outlined the maximum penalties linked with the offence including A$250,000 per breach of «fee for no service» offences; and A$2.1 million per breach of unconscionable conduct and misrepresentation.
Whilst ASIC did not specify the amount it would pursue, but at the 8,927 and 3,420 cases of «fees for no service» and unconscionable conduct, respectively, fines could total a whopping A$9.75 billion ($6.68 billion).
