Consumers

#NABandGrab outed for charging 28 per cent interest rate to blind, elderly farmer

By | | comments
NAB's customer, the Victorian farmer (name withheld) (Image courtesy www.michaelwest.com.au)
After the "people's hero" Michael West ran the story of a an elderly blind farmer being charged 28 per cent interest rate on his mortgage by NAB this week, the bank called its customer later that day claiming it was "an error". 
 

THE NATIONAL Australia Bank (NAB) has been charging an elderly blind farmer from rural Victoria 28 per cent interest rates on his mortgage.

The punitive charges were more than 25 per cent above the Reserve Bank cash rate for the past two years, and even beyond credit card charges, at a time when the region of Northern Victoria, where he grows peas, wheat and other grains, was affected by drought.

The farmer, who spoke to michaelwest.com.au on condition of anonymity, is negotiating a settlement with the bank via advocacy service Unhappy Banking. The bank declined to comment on the matter except to say: 

“To respect the privacy of all parties we are unable to comment on the specifics. We will continue to work with the client on this matter.”

On the farmer’s bank statements – those pertaining to $1.8 million in loans at rates of 28.12 per cent and 27.37 per cent – there is no mention of “default” or “penalty” rates. He had previously been paying 15.87 on a default account for a loan facility of around $400,000.

Subsequently, in 2014, the NAB rolled his loans into a “matured facility account” for $1.8 million, whose interest rates started at 28.12 per cent.

 

As part of his dispute resolution, the farmer recently asked the bank for his loan documents and these were duly provided. However, he told us this week that the interest rate figures on the statements had either been removed or omitted.

After complaining earlier this year about the usurious interest rates, the bank lowered the interest charges to 17.37 per cent.

Since 2014, the farmer has accrued more than $1 million in interest charges on his $1.8 million loan.

Editor’s Note: The day this story ran on michaelwest.com.au (published at 5am), the NAB later contacted the farmer, apologised and claimed the high interest rate was an “error”.

This article was originally published on 9 August 2016 on michaelwest.com.au under the title ''Blind Injustice' and has been reproduced with permission. You can read more from Michael on his website and follow him on Twitter @MichaelWestBiz.

Monthly Donation

$

Single Donation

$

Keep up! Subscribe to IA for just $5.

 
Recent articles by Michael West
Treasury hides corporate welfare data to boost Government attacks on poor

In its Christmas-time attacks on the old, poor, needy and sick, the Government ...  
Matt Canavan calls for taxpayers to fund corporate gas exploration

Matt Canavan now wants public money for gas exploration in South East Australia as ...  
Budget 2017: The bank levy, leaks and insider trades

Leaked news of a budget bank levy wiped $14 billion from the banking sector in one ...  
Join the conversation
comments powered by Disqus
Free daily news
Get daily updates from IA to your inbox for free.
SHOP AT IA
Shop IA
DONATE TO IA

We need YOU!
IA punches above its weight.
Help us sharpen our knuckledusters.
PLEASE DONATE NOW!

Donate to IA