AFCA inundated with complaints
Since it opened its doors on 1 November, the Australian Financial Complaints Authority (AFCA) reported it received over 13,000 phone enquiries, and 6,522 complaints from consumers and small businesses about financial products or services.
The regulatory body said it averaged 310 complaints per business day, and experienced an increase of more than 47 per cent in complaints received compared to its predecessors.
CEO and chief ombudsman, David Locke, said the number of calls and complaints was on par with what AFCA was expecting, and around 15 per cent of the complaints received in the month had been finalised already.
AFCA said the majority of complaints (45 per cent) were about credit, with general insurance causing some distress (21 per cent), followed by deposit taking (10 per cent) and superannuation (eight per cent).
Consumers showed their angst with the banks, with 2,367 complaints aimed at banks, 1,159 complaints aimed at general insurers and 1,040 complaints aimed at credit providers.
Locke said AFCA was currently investigating 84 definite systemic issues and four potential serious contraventions and other breaches.
AUTHOR
Anastasia Santoreneos
Recommended for you
ASIC has cancelled the Australian Financial Services Licence of MWL Financial Services and banned MWL’s director Nicholas Maikousis for 10 years over conduct in relation to the Shield Master Fund.
While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the professional landscape.
Financial planning technology provider GBST has completed a significant upgrade of its Composer platform for its APAC clients.
Intelliflo has been acquired by global investment firm Carlyle for $200 million, stating it wants to accelerate the software firm’s growth in Australia.
