The National Australia Bank (NAB) has received a record-breaking fine of $751,200 from the consumer watchdog for violating customer data regulations under the Consumer Data Right (CDR) framework. This federal program empowers Australians to access and control their personal data held by businesses.
The Australian Competition and Consumer Commission (ACCC) found that NAB failed to accurately disclose credit card limit information when requested by CDR-accredited providers on behalf of customers. The ACCC’s deputy chairwoman, Catriona Lowe, highlighted that inadequate quality of data limits consumers’ ability to fully leverage the benefits of the CDR, preventing them from comparing products, securing better deals, and making informed financial decisions.
The ACCC pointed out that NAB’s inaccuracies regarding credit card limits adversely affected the financial technology services available to customers, including mortgage broking tools reliant on CDR data. Lowe warned that compliance with CDR rules is critical and that non-compliance will attract scrutiny from the ACCC, potentially leading to further enforcement actions.
NAB’s record fine underscores the importance of accurate customer data in enhancing consumer choice and competition within the financial sector.