NAB acknowledges importance of CDR rules after ACCC penalty
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More news: NAB has acknowledged the importance of meeting “the standards necessary and expected” under the consumer data right (CDR) after it paid a $751,200 fine in response to four infringement notices sent by the consumer watchdog.
NAB chief digital officer Sujeet Rana confirmed that the bank "fully cooperated with the ACCC’s review and have resolved the data quality error identified".
What they said: "We appreciate and recognise the importance of ensuring we are meeting the standards necessary and expected under the regulations," Rana said.
He also said the bank considers the CDR a “safe and secure way” for consumers to share their data and is exploring new use cases.
“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," he said.
NAB pays $751k fine for alleged consumer data right breaches
The news: NAB has been slapped with penalties after the Australian Competition and Consumer Commission (ACCC) issued four infringement notices alleging the bank failed to disclose credit limit information in line with the consumer data right (CDR).
The numbers: NAB’s payment of $751,200 is the “highest amount paid for alleged contraventions of the CDR Rules to date”, according to the ACCC.
The fixed penalty per infringement notice for a listed company was $187,800 at the time of NAB’s alleged conduct, although this has lifted to $198,000 since 7 November 2024.
The context: The notices alleged failures by NAB to disclose or accurately disclose credit card limit data in response to four separate requests made by CDR accredited providers on behalf of their customers.
This impacted the service of several fintechs, including some that offer mortgage broking tools using CDR data. NAB has since rectified the identified data quality issues according to the ACCC.
However, the regulator noted that the payment of the fine outlined in the infringement notices is not an admission of contravention of the CDR rules.
What they said: “Poor data quality prevents consumers from experiencing the full benefits of the CDR,” ACCC deputy chair Catriona Lowe said.
"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."
The source: ACCC media release
