NAB withdraws court action to evict tenants of repossessed property

NAB has withdrawn an action in the Victorian Supreme Court to force the Victorian sheriff to evict tenants in two Ivanhoe East properties it has repossessed without 28 days’ notice.

A spokesperson for the bank says the court action was only aimed at “clarifying the legal process requirements for repossession” but the bank withdrew the action due to concerns over the “unintended consequences” it may have for tenants. The case, first heard on Monday, was set to resume on Thursday, October 27.

“We recognise and respect the rights of tenants and will always give them a minimum of 28 days’ notice. Often it is much more,” the spokesperson adds.

The action by the bank drew national coverage and a media backlash over concerns that a decision in favour of NAB would allow it and other lenders to evict tenants of properties in which the landlord has defaulted without any notice.

Media coverage of the action labelled the bank “cold-hearted” and “ruthless” in its actions, with reports pointing out it was at odds with its media campaign highlighting efforts to build “honest” relationships with its customers.

Toby Archer, a spokesman for the Tenants Union of Victoria, told Property Observer a ruling in favour of the bank would have led to the scenario where a lender did not have to secure a repossession order from VCAT to evict a tenant.

Archer says the ruling would have meant the bank could literally knock on the door and tell the tenant to get out.

“It’s a horrible proposition for a tenant who is paying rent and is blissfully unaware that the landlord has defaulted and has had their property repossessed,” he says.