The Australian Financial Complaints Authority (AFCA) has reported that it solved 76,681 complaints in the 2019-2020 financial year and obtained $258.6 million in compensation or refunds for its complainants.
In its annual report Chief Ombudsman and Chief Executive of AFCA, David Locke said the Authority received 80,546 complaints from consumers and small businesses, a 14 per cent increase in the monthly average compared to last financial year.
Mr Locke said AFCA was able to resolve the majority of complaints quickly, with complaints taking an average of 73 days to reach an outcome.
He said a majority of complaints (58 per cent) lodged with AFCA in this period related to banking and finance, followed by general insurance (24 per cent), superannuation (nine per cent), investments and advice (six per cent) and life insurance (two per cent).
He said credit cards were the most complained about product (with 11,628 complaints), followed by home loans (7,608), personal loans (5,722) and motor vehicle comprehensive insurance (4,104).
The Ombudsman said the speedy resolution of complaints allowed consumers to get on with their lives, and AFCA’s process was designed to support all parties involved to reach an agreement as early as possible.
Mr Locke said the Annual Review also outlined how AFCA approached the COVID-19 pandemic and worked with industry and regulators to support people with financial disputes.
“The massive and almost immediate economic impact of job losses and business shutdowns has been felt across the financial services industry, with consumers suddenly in hardship, businesses losing income, and insurance claims and chargeback requests being made as travel plans were cancelled, and superannuation funds rapidly implementing cash payments to thousands of claimants,” he said.
Mr Locke said AFCA worked hard to respond to the challenges of the pandemic in a flexible and pragmatic way to help complainants and financial firms resolve complaints quickly, acknowledging there were high levels of stress and uncertainty on both sides.
AFCA’s 134-page Annual Review can be accessed at this PS News link.
