The Australian Securities and Investments Commission (ASIC) is suing National Australia Bank (NAB) for failing customers facing financial hardship.

According to documents filed by ASIC in the Federal Court today, NAB failed 345 of its customers at their most vulnerable when they applied for hardship support from the bank.

ASIC alleges that between 2018 and 2023, NAB and its subsidiary AFSH Nominees Pty Ltd (AFSH) did not respond to 345 hardship applications within the 21-day timeframe required by law.

ASIC is seeking declarations, pecuniary penalties and adverse publicity orders against NAB and AFSH.

Today’s announcement follows ASIC’s action against Westpac in September 2023 for financial hardship misconduct.