INTHEBLACK November 2023 - Magazine - Page 10
FAST FOCUS
AFCA SEES SPIKE IN
CONSUMER DISPUTES
Australian Financial Complaints
Authority (AFCA) received
a record 96,987 complaints
from consumers in dispute
with financial firms in the
2022-2023 financial year. This
is an increase of 34 per cent on
the previous financial year.
AFCA chief ombudsman and
CEO David Locke says the rise
reflects growing financial stress
in the community, the continued
problem of scams, and issues
with insurer claims handling.
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10 INTHEBLACK November 2023
“We are deeply concerned
by the volume of complaints
consumers are having to
escalate to AFCA,” Locke says.
“It’s not fair on consumers
and not good for business.
We need to see a significant
improvement from firms.”
Overall, banking and finance
complaints rose by 27 per cent
to 53,638 in 2022-2023.
However, the sector has
continued to improve the
number of complaints
resolved at the earliest stage
of the AFCA process.
Meanwhile, personal transaction
accounts have overtaken credit
cards as the most complained
about product, with disputes
rising by 86 per cent. This is
partly due to scam-related
complaints, which increased by
46 per cent in 2022, to 6048.
In 2022-2023, consumers
secured A$253.8 million in
compensation and refunds
after coming to AFCA.
