In data released on Thursday, AFCA revealed it had seen a 13.7 per cent increase in complaints compared with the 2019 year, with more than 80,000 complaints lodged by consumers in the last 12 months.
AFCA resolved 78 per cent of cases, with a majority being settled in 60 days or less. Seventy-three per cent of complaints were settled by agreement or in favour of the complainant, with banks being the most complained about financial institution.
AFCA chief executive and chief ombudsman David Locke said super was one of the most complained about categories of financial product for the 2020 year, and that COVID-related financial hardship had also played a significant role in the increase in complaints.
“Australian consumers have faced a number of significant challenges this year,” Mr Locke said.
“The pandemic has had a particular impact on Australian households, with 20 per cent of COVID-19 related complaints being about financial hardship.
“One in 10 [general] complaints also related to financial difficulty – where a consumer was unable to make repayments on loans due to unforeseen circumstances or over-commitment.”
Almost 800 complaints over the three months since the coronavirus crisis was declared a pandemic related to super, the majority of which were about handling of the government’s early access scheme.
However, Mr Locke said the expected flood of COVID-related complaints had been less than the ombudsman anticipated, and that overall financial institutions had done a good job at responding to consumer hardship.
“We commend financial institutions for their quick response to the pandemic. As always, we encourage banks and insurers to maintain open and transparent communication with their customers about the support available to them if they’re experiencing financial difficulty,” he said.
AFCA complaints since inception(From Website)
AFCA has received 127,694 complaints since opening its doors on 1 November 2018, securing $371.1 million in compensation and refunds direct to consumers.
Credit has been the issue consumers have complained most about (43%) since 1 November 2018, followed by general insurance (23%), deposit taking (9%) and superannuation (9%).
A majority of complaints have been about banks (35%), followed by general insurers (19%) and credit providers (13%).
ADVICE – Does not get a mention??????????????????????
Now with less advisers around to sort this mess out, the complaints against the Insto & Industry Funds is now growing to new levels not seen before FASEA & the Haynes RC. The problem has always been the institutions, not the advisers.
Another parasitic growth industry.
People love to blame someone else for their greed and ignorance.
It appears to be very Australian.
Wayne – you summed it up very nicely!
Yep, there is no personal responsibility anymore. Wait until AFCA try use the FASEA code against advisers! We will be dead ducks for anything.
we need to be able to see granular data. how many financial planners were involved in these complaints? we need to know.
most complaints seem to be against institutions we need this info to clear our name. we have been blamed by everyone yet there are very few complaints against financial planners. we can then benchmark the number of complaints against criminality in the general population and also against other professions.
publish these details so we can tell everyone the truth as I want to blame those people responsible for the complaints.
financial planners are also interested in blaming, humiliating, and shaming others publicly. I look forward to the day. each day, and every day.
I want to shame others as my entire profession has been even though I have not had any complaints against me personally.
I am interested in humiliating others when can I have that opportunity and pleasure?
why is this great post not getting more thumbs up?
And how many were against advisers?
73% of cases resolved in the complainants favour eh? Is this done just to make the AFCA look good in the press so they can be seen as the Knights in White Satin saviours for the consumers frivolous complaints that really had no basis to begin with? In most cases banks will just fold over and give in because THEY MUST comply with the AFCA orders whereas the consumer does not, so it’s a rigged match with odds stacked in the “poor and vulnerable” consumers favour anyway!
Oh. I thought the article was referring to FASEA.
Could have been if all the advisers lodged complaints 4 times… Lol!