NAB cracking down on financial abuse

Those committing financial abuse would be banned from accessing their accounts under the incoming update.

One of the Big Four banks is taking steps to stamp out financial abuse, allowing bankers to “cut-off” customers found to be financial abusers.

National Australia Bank (NAB) on Monday flagged a November update to its terms and conditions to include “unacceptable account conduct” — meaning the bank can suspend, cancel, or deny individuals access to their accounts if it’s believed they’re financially abusing another person.

NAB’s head of customer vulnerability Michael Chambers said concerns about financial abuse remained one of the top reasons customers get in touch with their customer support team.

NAB is taking steps to deny financial abusers access to their accounts. Picture: NCA NewsWire / Damian Shaw

“Financial abuse can take many forms including where an individual is denied access to their own funds or has their funds misused by another individual,” Mr Chambers said.

“This form of control can occur between couples, family members or relationships where one person is providing care for another.

“We’re taking a firm stand against financial abuse, and we aren’t resting there. We’re working with other banks to help develop a consistent approach across the industry.”

Since January 2022, the bank has also blocked more than 200,000 abusive transactions — payments made to another person in which abusive comments are made in the transfer notes and references.

“Right now, we’re blocking around 15,000 abusive messages each month sent through payment channels and [Monday’s] move further puts financial abusers on notice that we will do everything we can to protect innocent people,” Mr Chambers said.

NAB also offers loans of up to $2500 to support customers trying to leave domestic violence situations.

Originally published as NAB cracking down on financial abuse