The Australian Financial Complaints Authority (AFCA) has only been operating in its new capacity for a month, but it’s already received more than 13,000 complaints.
The recently renovated AFCA replaced three other complaints schemes from November 1 in the wake of the abuses uncovered during the financial services royal commission.
Receiving on average more than 300 complaints a day, the not-for-profit has seen an increase of more than 47 per cent compared to its predecessors.
The most common complaints to AFCA were around decisions made by financial firms and service issues, such as denial of insurance claims, delays in complaints handling and service quality.
Most of the complaints were regarding credit (45 per cent), followed by general insurance (21 per cent) and deposit taking (10 per cent), while less than 10 per cent were about superannuation.
When it comes to complaints about providers, most were regarding banks, followed by general insurers and credit providers.
Days after its official launch, AFCA chair and former minister Helen Coonan told TICKY that changes made to the organisation tied into new policy changes on lending.
“It dovetails very nicely into a policy implementation to deal with some of the horror stories and difficulties that consumers and small business have seen coming out of the royal commission,” said Coonan.
“Its advantage is that, being a ‘one stop shop,’ consumers and small business can have access to it… and they don’t have to try and work out which ombudsmen to go to.”