Australian consumers and small businesses with financial complaints have collected over $83 million through the Australian Financial Complaints Authority (AFCA) in its first six months of operations.
AFCA’s Six Month Report which was published today reveals the complaints body has received over 35,000 complaints, far exceeding initial forecasts.
The report states that 60 per cent of complaints have already been resolved, with 74 per cent resolving in favour of the complainant or by agreement.
AFCA Chief Ombudsman and CEO David Locke said the large number of complaints highlighted the important role AFCA plays in rebuilding customer trust in the Australian financial services sector.
“AFCA stands firmly on the side of fairness and a key part of our role is increasing transparency in the financial sector,” Mr Locke said.
“We have published this report so that Australians can see which financial products and services receive the most complaints and how they are being handled by the financial firms.
“We recognise the importance of making this data open and accessible to the public.”
Banks received the most complaints of all financial institutions (12,305), followed by general insurers (6,839) and credit providers (5,447).
The most complained about financial products were credit cards (5,191), followed by home loans (2,921) and personal loans (2,704).
- 35,263 complaints received
- 60% of complaints resolved
- 74% of complaints were resolved by agreement or in favour of the complainant
- 88% of financial firms did not have a single complaint lodged against them
- $83m obtained in settlements. Note: This includes matters previously received by AFCA’s predecessor, Financial Ombudsman Service, and resolved by AFCA since 1 November 2018.