NAB ‘junk’ insurance compensation hits bank accounts of 45,000 Aussies

By Tony Zhang|09 July 2020
NAB

Tens of thousands of Australians have received a share of a $49.5 million settlement against NAB after the bank allegedly sold them junk insurance.

In November last year, Slater and Gordon settled a class action against NAB after the bank allegedly sold worthless insurance to vulnerable customers. 

Slater and Gordon senior associate David Barda said the money had come at a critical time for many Australians who have lost their jobs or are experiencing hardship because of COVID-19.

“We are pleased we can finally mark the end of this class action against NAB with a positive result for [tens] of thousands of Australians who will today wake up with a bit of extra money in their bank accounts,” Mr Barda said.

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“Class actions are often the only way people have the means through which to take on big business when they have been hurt or ripped off; the NAB class action has meant almost 50,000 people have today received what was rightfully owed to them, without having to do much more than fill out a couple of short forms.

It is the first time since the banking royal commission that customers who have been ripped off by large corporations will have received their compensation.

The royal commission revealed banks were selling worthless credit card and personal loan insurance to people with disabilities, people who were unemployed or chronically ill and ineligible to claim. Many people believed the insurance was compulsory or free, while others didn’t even know they had it.

The completion of this class action will mean there are three more major banks to round up in Slater’s #GetYourInsuranceBack campaign.

Slater and Gordon had filed a class action on CommBank in the Federal Court in June.

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Two class actions against ANZ and Westpac had been filed in the Federal Court in February.   

Mr Barda said Slater and Gordon would continue to fight for Australians wronged by big business.

“The [banking royal commission] revealed reprehensible behaviour from large corporations and big banks; we will continue to fight on behalf of those affected and give them back their voice,” he said.

The remaining eligible class action members will receive their compensation in the coming days.

The class action was run as a “no-win, no-fee” proceeding.

NAB ‘junk’ insurance compensation hits bank accounts of 45,000 Aussies
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