Settlement Approval Hearing
On 8 May 2020, Justice Lee of the Federal Court approved the $49.5 million settlement with NAB and MLC Limited in its class action over the sale of credit card and personal loan CCI products.
What are the next steps?
Registration is now closed. Slater and Gordon made the first round of distributions on 7 July 2020. We expect to make a second round of distributions in August or September. If you still bank with NAB, Slater and Gordon will transfer your compensation into your NAB account. If you no longer bank with NAB, Slater and Gordon will contact you in the coming weeks to receive payment instructions.
Will I have to pay out of pocket legal fees in order to receive my compensation?
No. You will not become liable for any out of pocket legal fees to receive your compensation. The proceeding was run on a No Win No Fee* basis and Slater and Gordon’s fees are paid out of the settlement fund. We note that over 93% of the settlement funds are being distributed to eligible group members. The legal fees and cost of administering the fund are under 7% of the total settlement.
Slater and Gordon’s fees for pursuing the class action and administering the settlement have amounted to less than 7% of the total settlement sum.
What is the NAB CCI Class Action about?
On 26 September 2018, Slater and Gordon filed a class action against NAB and MLC Limited in the Federal Court of Australia on behalf of persons who held CCI for their credit card or personal loan, namely:
- NAB Credit Card Cover (NAB Cover) at any time since 26 September 2012; and/or
- NAB Personal Loan Cover (NAB PLC) at any time since 13 June 2013.
The claim is based upon allegations that NAB and MLC have engaged in unconscionable conduct by selling CCI to persons who were ineligible to claim under the terms of, or otherwise highly unlikely to benefit from, the insurance policy. It is also alleged that NAB engaged in misleading and deceptive conduct in relation to the way CCI was sold to persons.
Am I eligible to participate in the class action?
The proceeding has been filed as an ‘open class action’. This means that you may be included in the NAB CCI Class Action if you have paid premium for NAB Credit Card Cover since 26 September 2012 and/or paid a premium for NAB Personal Loan Cover since 13 June 2013, and have satisfied one of the below:
You were not ‘gainfully employed’
Meaning you did not meet the employment criteria, for example, you were a casual, student, seasonal worker, self-funded retiree, dependent spouse or you were unemployed. Alternatively, you were not working more than 15 hours a week in the one occupation for a period of more than six months.
You were employed by your family, or their company or their business
Meaning your employer was an immediate family member.
You were employed on a fixed or short-term contract, including seasonal work, with an employer or agency, including as a casual worker
You were a partner in a business partnership or self-employed, either as a contractor or in your own business
You had a ‘critical illness’
Including cancer, chronic kidney failure (chronic renal failure), heart attack, paralysis, stroke, coronary artery bypass surgery and major organ transplant surgery.
You were under the age of 25 years
You were not an Australian resident and were either issued with a credit card (at any time) or were advanced a personal loan on or after 3 August 2015
You did not appreciate that you had purchased the policy
For example, you did not know that you were sold or had purchased the credit insurance policy.
You believed that you were required to take out the policy in order to be approved for the credit card or personal loan
You believed that the policy would be at no cost to you, or it was likely there would be no cost to you, when this was not the case
You believed that the policy was suitable for your needs and/or represented value for money, when this was not the case
For more information regarding the NAB CCI Class Action, please refer to the following documents: