NAB in hot water over credit card mail-out

The National Australia Bank should have known better.

Unsolicited credit cards are a big no-no under Australian law.

However the bank did send out American Express cards, to certain  customers who had not requested them.

That was a mistake.

The cards went to NAB Qantas Gold account customers, after the airline made changes to its frequent flyer program, from April 1 this year.

The NAB described the new cards as “companion cards.”  They worked on the customers’ existing credit card accounts.

No new accounts were opened and credit limits were not changed.

However, its move attracted an adverse assessment from the Australian Securities and Investment Commission.

ASIC, as the commission is known, “raised concerns” over the matter with the bank.

It said the law prohibits the distribution of unsolicited credit cards, unless they were specifically requested – in writing – by the customer.

This prohibition does not apply to replacement cards.

However, in a statement just issued, ASIC said the bank had “responded positively.”

The NAB had promised to write to all the customers concerned, asking if they wished to keep the card sent to them, if they have not already used it.

The cards sent to those who do not agree will automatically be “deactivated,” ASIC said.