More dirty bank tricks...NAB not the only bank guilty – Members can vouch for that!!
NAB nabbed for debt collection letters
26 October 2015
http://www.moneymanagement.com.au/news/policy-regulations/nab-nabbed-debt-collection-letters
National Australia Bank (NAB) has changed its procedures of its debt collection practices after concerns from the financial services regulator.
The Australian Securities and Investments Commission (ASIC) was concerned NAB's collection letters may have been misleading, deceptive or unconscionable.
NAB was sending debt collection letters using letterheads for ‘Fairhalsen Collections' and ‘Brunswick Collection Services', which may have given the incorrect impression that NAB had sold, outsourced, or otherwise escalated a debt when this was not the case.
Related News: Westpac pays price for boosting credit card limits
The letters only disclosed the entity was a NAB division in fine print at the bottom on the page.
ASIC was also concerned the letters sent to some customers during the collection process stated that if the debt was not paid, or contract made:
- * legal proceedings for recovery of the entire debt might commence without further notice and that such proceedings could result in a judgment being entered and/or bankruptcy;
- * a debt collector might visit the customer's home to collect the debt; or
- * NAB might use any other legal action necessary to collect the debt.
However, for the majority of the recipients, such action was either unlikely or would only be considered at a later stage in the collection process.
NAB has now removed references to Fairhalsen Collections and Brunswick Collection Services, and representations in relation to face-to-face contact, legal action and bankruptcy (unless such action is likely to occur).
ASIC deputy chairman, Peter Kell said "the threat of legal proceedings and bankruptcy can be very stressful. Collectors must not threaten legal action if such action is not possible, not intended, or not under consideration."