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Record-breaking 100,000 financial complaints received by AFCA

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Overall, AFCA received 102,790 complaints – a 23 per cent increase on 2022 – and consumers secured $304 million in compensation and refunds, up 38 per cent on the previous year.

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Locke said the volume of complaints reaching AFCA was putting unnecessary pressure on the external dispute resolution system and causing further delays for consumers.

“As we head into the new year, our hope for 2024 is that this will be the year that anti-scam initiatives by industry and government finally disrupt this serious and organised crime,” he said.

“We also need to see a downward trend in complaints overall, with financial firms working better to support their customers and to address complaints quickly and efficiently in-house.”

Before AFCA was established by recommendation of the 2017 Ramsay Review, complaints were handled by the Financial Ombudsman Service, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal.

Locke said that in their final full year, these three schemes received 52,000 complaints between them, which is roughly half the volume recorded by AFCA in 2023.

AFCA has been in operation from November 2018, and has since received more than 420,000 complaints and secured $1.3 billion in compensation or refunds for consumers. The dispute resolution scheme has also identified wider issues which cover more than a single complaint, resulting in 4.9 million people receiving more than $380 million.

Locke said five years on from the Ramsay and Hayne reports which highlighted room for improvement in the financial services sector, AFCA continued to play an important role.

“Our work as an ombudsman service shows that the need for a strong consumer protection framework remains,” he said.

(The following story may or may not have been edited by NEUSCORP.COM and was generated automatically from a Syndicated Feed. NEUSCORP.COM also bears no responsibility or liability for the content.)

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