By Paulina Duran
SYDNEY (Reuters) – An Australian law firm filed a class-action lawsuit against National Australia Bank (AX:NAB) and its pension unit on Thursday on behalf of customers who were allegedly sold worthless insurance policies for their credit cards.
The class action is the sixth to be filed against a major financial institution and the first against one of its powerful banks as a result of revelations stemming from a public inquiry into Australia’s financial sector.
The inquiry, called a Royal Commission, can recommend regulatory reform and prosecutions and is due to table an interim report in coming days before issuing its final recommendations to the government in February 2019.
Slater and Gordon lawyer Andrew Paull said NAB and its pension unit MLC, one of Australia’s largest pension funds, had knowingly sold insurance to credit-card holders who were ineligible to claim under the terms of the policies.