NAB class action lawsuit settled: You may get your money back

NAB is about to pay back $40 million to its customers. Are you about to cash in on a windfall?

Big Four bank to pay back $40 million

NATIONAL Australia Bank has moved to settle a multi-million dollar class action over unfair fees.

NAB and law firm Maurice Blackburn lodged an application in the Federal Court on Friday to open and close the class action, signalling that they are working to settle the matter.

The bank on Wednesday described the move as “a first but significant step” towards a potential settlement.

“NAB is doing this because we believe this is the right thing to do for our customers and our business,” chief executive Andrew Thorburn said in a statement.

The action could see NAB pay out up $40 million to around 30,000 customers, according to the Herald Sun.

Andrew Thorburn , CEO of NAB The Australian / Picture David Moir 2910/2014

The class action is one of a string of legal actions un undertaken by Maurice Blackburn against Australian banks, including ANZ, Westpac and the Commonwealth Bank, over unfair fees.

Earlier in 2014, the Federal Court ruled ANZ had illegally imposed penalties for late payments on credit cards.

Those charges — made when a customer missed a minimum credit bill payment — were either $20 or $35, representing a mark-up of up to 7,000 per cent on actual costs of as low as 50 cents.

“It’s not often we see a bank take a leadership position and genuinely act in the interests of customers so it’s important to acknowledge this is positive step by NAB. We believe this sends a clear message to other businesses who slap on excessive late payment fees that the practice needs to stop,” says Choice spokesman Tom Godfrey.

“It’s not the role of business to punish customers. We expect to see late payment fees to come down in other sectors, such as telecommunications, as a result of this decision.”

Originally published as NAB class action lawsuit settled: You may get your money back