National Australia Bank Limited (NAB) has faced penalties totaling $751,200 after the Australian Competition and Consumer Commission (ACCC) issued four infringement notices for alleged breaches of the Consumer Data Right (CDR) Rules. These notices were related to NAB's failure to accurately disclose credit limit data in response to requests from various CDR accredited providers acting on behalf of consumers.

The CDR is a nationwide initiative designed to empower Australians by allowing them to share their data with businesses, enabling better access to products and services. For the CDR to function effectively, it is essential that the data shared is accurate, complete, and formatted correctly. ACCC Deputy Chair Catriona Lowe emphasized that poor data quality hinders consumers from fully benefiting from the CDR, as inaccuracies prevent them from making informed decisions regarding product comparisons and financial management.

NAB's inaccuracies in providing credit card limit information adversely affected several fintech companies that rely on CDR data to offer services such as mortgage broking tools. These tools aim to streamline loan applications for consumers by utilizing their own data more effectively. The penalties imposed on NAB represent the highest amount paid for alleged violations of the CDR Rules to date. NAB has cooperated with the ACCC during the investigation and has taken steps to rectify the identified data quality issues.

The ACCC has noted that data holders in the banking sector have had ample time to understand and comply with their CDR obligations. As the CDR program evolves, maintaining data quality remains a key focus for the ACCC. Reports indicate that in the latter half of 2024, over 530,000 consumers successfully utilized CDR products and services across banking and energy sectors, marking a significant increase in consumer engagement.

All CDR participants are cautioned that non-compliance with CDR rules will attract scrutiny from the ACCC and may lead to enforcement actions. It is important to note that the payment of a penalty does not equate to an admission of wrongdoing regarding the CDR rules.