The Australian Financial Complaints Authority (AFCA) has published preliminary consumer complaints data for 2021-2022.
The snapshot shows that 67% of complaints were resolved by agreement between the firm and consumer.
51% of complaints were resolved early, at the first stage of AFCA’s process, when it registers a complaint and refer the complaint back to a firm for further consideration.
About 7% of disputes progressed to a formal decision in 2021-22.
It will be interesting to see the effect that AFCA’s new funding model has on settlements.
For complaints resolved early, 58% related to banking and finance, 44% related to insurance, 33% related to Investments and advice and 33% related to Superannuation.
The top five products most commonly complained about were:
- Credit cards
- Personal transactions (including unauthorised transactions and scams)
- Home loans
- Home building insurance (including natural disasters)
- Motor vehicle – comprehensive
The type of products complained about were:
- Credit: 37%
- General insurance: 26%
- Deposit-taking: 15%
- Superannuation: 7%
- Payment systems: 7%.
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Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.