Tue. Feb 18th, 2020

National Australia Bank is sued for its mortgage collection program

The Australian regulatory authority today announced the filing of a lawsuit against the National Australia Bank (NAB) for its controversial mortgage loan collection program between September 2013 and July 2016.

The Australian Securities and Investment Commission (ASIC) alleged that the NAB accepted information and documents from potential clients provided by agents outside the entity without a license to perform credit activities, according to a statement.

According to the ASIC, the bank's program, through which an agent captured clients for mortgages in exchange for a commission, generated some 24,000 million Australian dollars (16,215 million dollars or 14,652 million euros) in loans.

In total, some 16 bankers violated various aspects of the Consumer Credit Protection Law and the National Credit Law by accepting documents, some of them false, from 25 unlicensed agents in relation to 287 home purchase loans.

The regulator denounced the "serious risk" to consumers posed by the NAB program, which was already criticized for its "bad practices" in the report published in 2018 by a Royal Commission that investigated the conduct of banks in Australia.

The regulatory body will ask the Federal Court of Australia to impose a civil penalty, which in the case of the violation of the National Credit Law can reach a maximum of 1.8 million Australian dollars (1.2 million dollars or 1 , 1 million euros).

. (tagsToTranslate) Demand (t) National (t) Australia (t) Bank (t) fundraising

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