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Big four bank NAB was forced to pay up following its failure to disclose credit limit data upon request.
The National Australia Bank (NAB) has paid a series of fines totalling $751,200 after being served four infringement notices by the Australian Competition and Consumer Commission (ACCC) under Australia’s Consumer Data Right (CDR) Rules.
The ACCC found that NAB had failed to respond to four separate requests by CDR-accredited providers to provide accurate information regarding credit card limits.
“Poor data quality prevents consumers from experiencing the full benefits of the CDR,” Catriona Lowe, ACCC deputy chair, said in a 19 June statement.
“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.”
NAB’s failure to disclose the requested data impacted several fintechs that provide mortgage broking tools that utilise CDR data. The six-figure fine is the largest levied for CDR breaches, and the ACCC noted that NAB has worked with the commission and has addressed the data quality issues identified.
“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.
NAB chief digital officer Sujeet Rana said it supports the aims of the CDR.
“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,” Rana told Cyber Daily.
“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.”
The CDR rules are designed to give consumers more control over their data and how it is held, used, and transferred between data holders and accredited third parties.
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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