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
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
While efficiency remains a top priority for Australian advisers, State Street has revealed the profession is now juggling this desire with the need to maintain personalisation of its service offering.
A possible acquisition of data provider Iress is becoming a greater likelihood after the firm announced it is engaging with multiple interested parties.
