Trending News 18 June

NAB loan customers can join class action for compo

Law firm Slater & Gordon is running a class legal action claiming that National Australia Bank engaged in unconscionable conduct in selling credit card insurance policies to customers, including unemployed people, who were unlikely to be ever eligible to make a successful claim.

On Friday the Federal Court of Australia granted Slater & Gordon leave to expand the action to include NAB customers who were sold insurance for personal loans.

“Apologies are not enough,” said Slater and Gordon principal lawyer Andrew Paull.

NAB knew that selling the insurance on credit card and personal loan debt was wrong said Mr Paull.

NAB lawyer, Sharon Cook, said NAB customers who have questions can call the bank’s dedicated hotline for credit card insurance customers on 1300 051 056.

NAB customers who paid for personal loan insurance premiums since June 13, 2013, may be eligible to join the class action, which is being run on a no win, no fee basis.

Bank of Mum and Dad comes under scrutiny

National Australia bank is introducing new rules for loan guarantors. Borrowers who ask their parents or other family members to guarantee their loans will need to provide evidence that the guarantors have received legal advice or reviewed the loan documents.

Co-borrowers who don’t obviously benefit from the purchase of the property also need to show they understand the risks of being a co-borrower.

The ‘Bank of Mum and Dad’ refers tot eh increasing use of parental support by home buyers. The Bank of Mum and Dad is estimated to be the ninth biggest home finance provider in Australia.