NAB responds to ASIC concerns on unsolicited credit cards
The National Australia Bank (NAB) has responded to Australian Securities and Investments Commission (ASIC) concerns about the bank’s distribution of unsolicited American Express cards to NAB Qantas Gold customers.
The ‘companion’ cards were sent out to customers who were migrated from the NAB Gold Rewards accounts, which included a MasterCard or Visa card, to NAB Qantas Gold accounts. As part of that migration, customers were sent a ‘companion’ American Express card, to be used in conjunction with their MasterCard or Visa card. The companion cards were linked to the same account and there were no changes to credit limits during this migration.
However, ASIC found that NAB had breached section 12DL of the ASIC Act, which prohibits the sending of unsolicited debit and credit cards where the customer has not requested the card in writing and where the card is not a renewal or replacement.
NAB has responded to ASIC’s concerns and is writing to all of its Qantas Gold account customers, advising that those who have already used the companion cards have the choice not to retain the card while those who have not used the companion cards have the opportunity to confirm that they wish to retain the card in writing. Otherwise, the American Express card will be automatically deactivated.
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