AFCA is on track to receive the most complaints it has ever seen by the end of FY23. 

On average, AFCA has received 7,588 complaints a month since the beginning of the financial year (1 July 2022) – a 26% monthly increase compared to the previous financial year (FY22) where AFCA saw an average of 6,030 complaints a month. 

AFCA has now received 53,118 complaints since 1 July 2022. This means, AFCA could see up to 100,000 complaints by the end of the financial year.  

As mentioned in previous Member News complaints updates, this influx in complaints is putting pressure on AFCA’s complaints handling operations.  

To date, we have increased the capacity of our Registration and Referral team to ensure the large number of complaints being lodged with AFCA are processed and referred back to firms more quickly. This means some members may see an increase in referrals.
 
We have also increased the size of our Dispute Resolution Specialist teams and continue to look at IT solutions to improve efficiency and timeliness. 

AFCA acknowledges this pressure is also being felt by industry – with scams and the ongoing impact of recent flooding events affecting many banks and insurers.  

We encourage members to continue to invest in their internal dispute resolution teams and processes and welcome the recent initiatives and investment from CBA and NAB to address scams. 

Addressing issues and challenges early will not only reduce the number of complaints reaching AFCA but could see fewer consumers raising a complaint in the first place.  

January overview 

AFCA received 7,457 complaints in January 2023, an increase of 35% compared to January 2022.  

In the first month of 2023, AFCA closed 7,279 complaints. More than 60% of complaints were resolved at Registration and Referral, while 5% were closed at Rules, 28% at Case Management and 4% at Decision.   

Banking and finance 

In January 2023, AFCA received 4,304 banking and finance complaints, up 31% from January 2022. 

Unauthorised transactions continue to drive this increase – accounting for a quarter (23%) of all banking and finance complaints in January 2023.  

AFCA received 439 complaints relating to scams last month, with 420 of these about transaction scams.  

AFCA has published three new EDR response guides about transaction complaints to support members in responding to these complaints, including guides for scams (authorised transactions), chargebacks, and disputed transactions (including remote access). These can be found on the AFCA website here. 

General insurance 

AFCA saw more than 2,000 general insurance complaints in January 2023, with increases across all major insurance products – a 37% increase compared to January 2022.   

There were 751 home building insurance complaints and 568 motor vehicle comprehensive insurance complaints lodged with AFCA last month. 

A quarter (26%) of general insurance complaints were about delays in claim handling (537 complaints). AFCA is communicating with complainants about its own delays early and regularly to manage expectations, and encourages insurers to do the same. Providing regular updates to customers throughout the claims and internal dispute resolution process can help to reduce complaints. 

In January, nearly 300 denial of claim complaints were lodged with AFCA.  

To support the timely handling of flood related claim denial complaints, AFCA has published a new factsheet for general insurers. The new factsheet outlines what information financial firms and complainants should provide to AFCA in complaints about flood claim decisions, particularly when a site-specific hydrology report is not available. You can find this here. 

Investments and advice 

There was a 25% increase in investment and advice complaints in January 2023 compared to January 2022.  

AFCA received 272 investment and advice complaints last month, with complaints about shares accounting for 21% of these matters.  

Superannuation and life insurance 

AFCA received 517 superannuation complaints last month, up 40% from January 2022. More than 20% of these complaints were about delays in claim handling.  

Meanwhile, life insurance complaints remain steady, with 133 complaints (down 31% from January 2022).