AFCA sees 75,000 complaints a year

Yasmine Raso

Senior Journalist, Financial Newswire

18 November 2022

The Australian Financial Complaints Authority (AFCA) has found it heard over 300,000 disputes from Australians in its first four years, recording an average of around 75,000 complaints a year and close to $900 million in compensation and refunds.

Since it was first established in 2018, AFCA has discovered and reported 227 systemic issues and “serious contraventions” of the law to federal regulators, recovering an additional $280 million in refunds to 6.5 million customers.

It also assisted 5,000 victims of over 50 weather-related natural disasters, 24,000 people experiencing financial difficulty and 17,000 COVID-related complaints, helping to settle disputes regarding financial products such as travel insurance and the early release of superannuation during the pandemic.

“The past four years have demonstrated the critical role AFCA plays,” Chief Executive Officer and Chief Ombudsman, David Locke, said.

“As we move into a period of heightened economic uncertainty, and amid increasing natural disasters, the need for AFCA’s services has never been greater.”

The body also helped to bring “misleading and deceptive conduct in the sales of funeral plans to Indigenous communities” to the surface, with AFCA ombudsmen issuing 178 decisions and awarding more than $1.4 million in refunds in cases involving Aboriginal Community Benefit Fund (ACBF) companies.

AFCA also resolved 60 per cent of cases in under 60 days, with two out of three cases settled by helping both parties reach an agreement.

“As long as the outcomes are fair and just, we think early resolution is good for everyone,” he said.

“For industry, it means retaining customers’ business and goodwill. For consumers, the sooner a matter is resolved the better, because financial disputes can be very stressful.”

Locke also said the organisation also aimed to work with the financial services industry to help improve its systems and structures.

“Our aim is to see fewer complaints, not more,” he said.