NAB under ASIC fire
(10 November 2009 – Australia) NAB has responded to the Australian Securities and Investment Commission (ASIC) over allegations it had breached the 2001 Act and will offer customers a card cancellation to make amends.
Between February 10 and May 20 2009, NAB proactively migrated customers with an NAB Gold Rewards account, to a NAB Qantas Gold account; both accounts with a MasterCard or Visa Card.
As part of the migration NAB sent customers two new cards, the Qantas MasterCard or Visa, to replace the customer’s existing card and a companion American Express.
In other cases the customer just received the American Express card to accompany the customers existing Qantas MasterCard or Visa held by the customer.
The companion American Express cards were intended to be used in conjunction with the MasterCards or Visa cards and would be both linked to the same account.
ASIC was concerned that the distribution was unsolicited and potentially in breach of section 12DL of the 2001 Act.
The Act prohibits the sending of unsolicited credit cards or debit cards unless the card is in replacement or renewal; or the customer requests the card in writing.
The distributions of the American Express cards were not in response to any customer requests.
NAB will be writing to all customers who have used the companion card giving them the opportunity to no longer retain the card and those who have not yet used it the opportunity to confirm in writing that they would like to retain it.
As part of the migration NAB sent customers two new cards, the Qantas MasterCard or Visa, to replace the customer’s existing card and a companion American Express.
In other cases the customer just received the American Express card to accompany the customers existing Qantas MasterCard or Visa held by the customer.
The companion American Express cards were intended to be used in conjunction with the MasterCards or Visa cards and would be both linked to the same account.
ASIC was concerned that the distribution was unsolicited and potentially in breach of section 12DL of the 2001 Act.
The Act prohibits the sending of unsolicited credit cards or debit cards unless the card is in replacement or renewal; or the customer requests the card in writing.
The distributions of the American Express cards were not in response to any customer requests.
NAB will be writing to all customers who have used the companion card giving them the opportunity to no longer retain the card and those who have not yet used it the opportunity to confirm in writing that they would like to retain it.
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