Login
ISCOVER
The major bank has received four infringement notices from the consumer watchdog over alleged breaches of CDR rules.
National Australia Bank (NAB) has paid a record $751,200 in penalties for alleged breaches of Consumer Data Right (CDR) rules after the major bank received four infringement notices from the Australian Competition and Consumer Commission (ACCC).
As part of the CDR, participating lenders are required to ensure that the data consumers have consented to be shared is kept “accurate, up-to-date, complete and in the required format”.
However, the regulator alleges NAB failed to “disclose, or accurately disclose” credit limit data in response to four separate requests made by different CDR-accredited providers on behalf of consumers.
These alleged failures reportedly impacted the service of several undisclosed fintechs, according to the ACCC, including “some fintechs who offer mortgage broking tools using CDR data”.
The ACCC also noted NAB’s penalties are the highest amount paid for alleged contraventions of CDR rules to date.
ACCC deputy chair Catriona Lowe said poor data quality prevented consumers from realising the full benefits of the CDR.
“When banks or energy retailers don’t provide accurate data, consumers can’t take advantage of CDR products and services to compare products, find better deals, manage their finances or make informed decisions about product switching,” Lowe said.
NAB responds
The consumer regulator said the major bank had fully co-operated with its investigation and has since made efforts to rectify data quality issues identified.
Speaking to The Adviser, Sujeet Rana, NAB chief digital officer, said: “NAB has long been an active participant in the consultation and development of the Consumer Data Right (CDR), including as an accredited data recipient. We see CDR as a safe and secure way that consumers can share their data with accredited recipients and we continue to explore new use cases that can help to deliver better experiences for customers.
“NAB has made a significant investment to deliver the complex CDR requirements as well as investing resources to develop our capabilities to deliver new innovations.
“We have fully cooperated with the ACCC’s review and have resolved the data quality error identified. We appreciate and recognise the importance of ensuring we are meeting the standards necessary and expected under the regulations.”
Ongoing evolution
The data sharing program continues to evolve.
In the second half of 2024, CDR participants reported that more than 530,000 consumers had successfully used CDR products and services across the banking and energy sectors, according to the ACCC.
Earlier this year, the Albanese government also confirmed the future trajectory of the scheme, with a range of changes, including expanding to non-bank lenders and reducing the period for which data must be held and shared.
However, with this focus comes scrutiny and the ACCC said participating lenders have had several years to understand their obligations.
“All CDR participants are reminded that failure to comply with the CDR rules will result in scrutiny by the ACCC and may result in enforcement action,” Lowe said.
[Related: Government confirms next steps for CDR]
JOIN THE DISCUSSION