Customer Refund Activities
NAB Low Rate Visa Card
Cash Advance Interest Refund
Issue/Question
Introduction – Refund of cash advance interest on NAB Low Rate Visa Cards
Answer
There are two interest rates that apply to the NAB Low Rate Visa Card:
• •
The interest rate for cash advances, and The interest rate for purchases.
When customers opened their Low Rate Visa Card account we committed to confirming changes to the purchase and cash advance interest rate on the customer’s statements. While we correctly advertised changes to our Low Rate Visa interest rates for both cash advances and purchases and the rates were correctly disclosed in statements, we did not confirm the cash advance interest rate changes in statement messages. We have confirmed that from 15 May 2006 up until the issue date of Low Rate Visa statements in July 2007, customers did not have the changes to cash advance interest rates confirmed on their statement. Statement messages did confirm the changes to the purchase interest rates. Due to the error, customers who obtained cash advances with their Low Rate Visa Card during this period may not have appreciated that the interest rate for cash advances had changed. We have therefore decided to refund affected Low Rate Visa Card customers the difference between: • • the interest customers paid for cash advances on their Low Rate Visa Card; and the interest they would have paid if the cash advance interest rate had stayed at the rate the customer was advised when they opened their account.
How do I know if I was affected?
Only customers who made use of the cash advance facility on their Low Rate Visa Card were charged the new cash advance interest rates from15 May 2006 until the end of the July 2007 statement period. If you opened your account prior to 15 May 2006, your account was affected from 15 May 2006 until the end of your July 2007 statement period. If you opened your account on or after 15 May 2006, your account was affected from that date until the end of your July 2007 statement period.
What cash advance interest rate changes were made over this period?
Please refer to the table below to determine the cash advance interest rate advised to you when you opened your account and the advertised cash advance interest rate changes. Date Account Opened Prior to 15 May 2006 15 May 2006 to 7 August 2006 8 August 2006 to 13 November 2006 14 November 2006 to 26 February 2007 27 February 2007 to 31 July 2007 Low Rate Visa Card (Cash Advance) (advertised rate) 16.65% p.a. 16.99% p.a. 17.24% p.a. 17.49% p.a. 17.99% p.a. Increase in the Advertised Rate No change 0.34% 0.25% 0.25% 0.50%
Date: 26 February 2008
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Customer Refund Activities
NAB Low Rate Visa Card
Cash Advance Interest Refund
Issue/Question
How was this resolved?
Answer
• The interest rates appearing in the section “Closing Balance Breakdown” on your statements were correct, and we have confirmed changes to the cash advance interest rates in the your July 2007 statement. If your Low Rate Visa Card was open on 30 August 2007, your refund was credited to your account on that day. A statement insert, explaining the refund, and a refund credit were provided in your September 2007 statement.
•
How was the credit amount calculated?
The refund payable is the difference between: • • the interest they have paid for cash advances on their Low Rate Visa Card; and the interest they would have paid if the cash advance interest rate had stayed at the rate advised to the customer when they opened your account.
What happens if I closed my Low Rate Visa account prior to 30 August 2007?
We are mindful that the financial benefit associated with a refund under $2.00 may not justify the cost and inconvenience to our customers in having to bank a cheque for this amount. At the same time we do not want to benefit from the incorrect application of these fees, so we propose to donate any refunds under $2.00 to the Ovarian Cancer Research Foundation on your behalf. If your total refund amount is below $2.00, you will receive a letter advising you of the refund amount and our intention to donate this to the Ovarian Cancer Research Foundation on your behalf. However, if you wish to receive your refund, simply advise us of your requirements within 6 weeks of receiving this letter. Your refund instructions can be provided by calling 1800 724 638. Your refund will then be made to you, as instructed. For refunds amounts equal to or greater than $2.00, payment will be made as follows: • • If you have a current NAB transaction account, a Direct Credit will be processed to your account on 29 February 2008. If you do not have a current NAB transaction account but do have an alternate NAB Credit Card account, your refund will be processed to your Credit Card on 29 February 2008. Where you no longer hold any NAB accounts, a letter will be sent to you notifying you of your refund on 29 February 2008.
You
•
will be asked to select your preferred payment option, which will include:
1. Payment via a Bank Cheque; or 2. To donate your refund to the Ovarian Cancer Research Foundation. The completed form is to be returned to us in the Reply Paid envelope (provided with the letter) addressed to Reply Paid 2870, GPO Box 2870, Melbourne, VIC 8060. On receipt of the completed forms, will be process your refund as per your instructions.
Date: 26 February 2008
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Customer Refund Activities
NAB Low Rate Visa Card
Cash Advance Interest Refund
Issue/Question
What if I’ve misplaced the Reply Paid envelope provided
Answer
All Payment Instruction forms need to be sent to: Customer Refund Activities Reply Paid 2870 GPO Box 2870 Melbourne, Vic 8060. There is no need to apply a stamp to letters sent to this address.
How do I get further information?
If you have any further queries, please call us on 1800 724 638, 8am - 7pm Australian Eastern Daylight Time (AEDT), Monday to Friday.
Date: 26 February 2008
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