Australian Financial Complaints Authority receives over 72,000 complaints in 2021-22
Australians in dispute with banks, insurers, super funds, investment firms and financial advisers lodged 72,358 complaints with the Australian Financial Complaints Authority (AFCA) in the past 12 months. The volume of complaints is 3% higher than in the previous financial year.
One of the biggest increases was generated by natural disasters like floods, with 1,586 complaints being made, more than double the 653 complaints from such disasters the previous year.
Among the largest financial firms, the top 4 banks together accounted for nearly 20,000 complaints, a rise of nearly 10%, while the top 4 insurers together accounted for about 9,400 complaints, up 19%. Overall, the number of licensed financial firms with a complaint lodged against them was 5% lower than in the previous 12 months.
AFCA’s Chief Ombudsman, David Locke, said he was pleased to see that, overall, half of all the complaints that reached AFCA were resolved quickly, at the earliest stage of its process. Altogether, 67% of complaints were resolved by agreement between the parties.
The preliminary data “snapshot” as at June 30 shows that credit cards were the most complained about product in 2021-22, accounting for 13% of all complaints. But, despite topping the list for another year, complaints about cards were down 8% on the previous year.
Personal transaction accounts, home loans, home building insurance and motor vehicle insurance rounded out the top 5 most commonly complained about products or services in 2021-22.
Overall, in 2021-22, successful complainants secured more than $200 million in compensation and refunds. In addition, AFCA’s investigations into a range of systemic issues resulted in remediation payments to consumers totalling more than $18 million.
Altogether, work on 1,413 complaints had to be paused in 2021-22 because 14 firms were affected by insolvency issues. It is estimated that consumer claims in these complaints total about $195 million.