National Australia Bank and Personal Guarantees - 6 June 2001

National Australia Bank fully co-operated with the Australian Competition and Consumer Commission to promptly rectify the situation involving a personal guarantee taken from Mrs Kathlyn Ashton.

The National sought mediation and agreed to a settlement in the Federal Court case involving Mrs Ashton. The National has refunded money held as a result of the personal guarantee and paid additional compensation.

"As part of the settlement the National has agreed to reinforce procedures related to taking personal guarantees which are necessary for many small businesses to obtain adequate finance," says Mr Mike Pratt, Chief Executive Officer, Australian Financial Services.