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NAB pays out $1.3m to clients who received bad advice

NAB Wealth has so far paid $1.3 million to customers who claimed compensation for bad advice, and is continuing to review new complaints.

As part of the bank's 'Customer Response Initiative', which started in February, NAB has reimbursed 62 customers after resolving their claims. Half of these customers received $5,000 or less, the bank said.

NAB is continuing to respond to new complaints within 45 days, as it had committed to.

ifa understands it is not yet known how much more the bank will have to dish out since the initiative is an ongoing process. 

In addition, NAB will soon start writing to customers whom it believes may have experienced financial loss due to inappropriate advice. This process is set to begin in October.

NAB Wealth group executive Andrew Hagger said in a statement that NAB began working on the Customer Response Initiative as a way to improve customers' experience.

"Today's update is another important step to strengthen our business and ensure we are always open, transparent and take issues impacting customers seriously," Mr Hagger said.