The National Australia Bank Ltd (ASX: NAB) share price is in focus today after it was revealed the ASX bank share has paid a ACCC penalty.
The Australian Competition and Consumer Commission (ACCC) is one of Australia’s main regulators. It was noted by the ACCC that the payment of a penalty from an infringement notice is not an admission it broke the rules.
The ACCC can issue an infringement notice when it has reasonable grounds to believe a business has contravened the rules.
NAB’s ACCC penalty
According to the ACCC, NAB has paid penalties totalling $751,200 after the regulator issued it with four infringement notices for alleged contraventions of the consumer data right (CDR) rules.
These infringements relate to alleged failures by NAB to disclose, or accurately disclose, credit limit data in response to four separate requests made by different CDR-accredited providers on behalf of consumers.
CDR is an Australia-wide data sharing program that aims to empower Australians to leverage the data businesses hold about them for their own benefit.
The ACCC noted that for the CDR to be effective, it is critical that the data which a consumer has consented to be shared is accurate, up-to-date, complete and in the required format.
ACCC Deputy Chair Catriona Lowe said 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 if the data is poor quality.
What happened here?
The ACCC explained that, in this case, the failure to provide accurate information about credit card limits impacted the service a number of fintechs provided to consumers, including some fintechs who offer mortgage broking tools using CDR data. These tools are designed to provide consumers with faster, simpler and more secure loan applications which better leverage their own data.
This is the highest amount paid for alleged contraventions of the CDR Rules so far, according to the ACCC. NAB has cooperated with the ACCC’s investigation and has reportedly rectified the data quality issues identified.
Data holders in the banking sector have had years to understand and implement their CDR obligations.
Final thoughts on the NAB share price
With NAB shares returning close to a multi-year high, I wouldn’t say it’s a great time to invest in this ASX bank share, particularly with the growing competition in the business banking segment.
But, while this penalty isn’t a good look, it doesn’t seem meaningful to NAB’s net profit.
There are other ASX dividend shares I’d buy first though.
