Complaints received icon

72,358 complaints received

Complaints closed icon

71,152 complaints closed

Compensation icon

$207.73 million in compensation was provided to consumers through AFCA’s dispute resolution processes

Calendar icon

72 days to resolve a complaint, on average

Our preliminary data “snapshot” as at June 30 shows a 3% rise in complaints received over the 2021-22 financial year. The total compensation and refunds secured by consumers was 13% lower. Complaints were resolved in an average of 72 days, a decrease from 76 days the previous year, reflecting work within AFCA on complaint closures but also the continuing efforts by financial firms to resolve complaints in a timely manner.

Agreement icon

67% resolved by agreement

Early resolution icon

51% resolved at registration and referral ('early resolution')

The snapshot shows that nearly 70% of complaints were resolved by agreement between the firm and consumer. About half were resolved at the first stage of our process, when we refer a complaint back to a firm for further consideration – steady with the previous year.

Complaints resolved early (at registration and referral stage)

Product line

FY 2022

FY 2021

Banking and finance

58%

55%

Insurance

44%

46%

Investments and advice

33%

33%

Superannuation

33%

33%

Percentage resolved by agreement

Product line

FY 2022

FY 2021

Banking and finance

74%

74%

Insurance (general and life)

58%

63%

Investments and advice (investments only)

45%

49%

Superannuation

54%

62%

When a complaint comes to AFCA, the first stage in our process is to register it and refer it back to the financial firm for further consideration. AFCA welcomes early resolution at this stage, as long as the outcome is fair for both parties, because it’s efficient and cost-effective for firms and it takes away anxiety and uncertainty for complainants.

If early resolution at this first stage is not possible, we continue to work with the parties to try to help them reach agreement during processes such as mediation.

But if agreement can’t be reached we can make a decision that, if accepted by the complainant, is binding on the firm. About 7% of disputes progressed to a formal decision in 2021-22, steady with the previous year.

Members icon

1,628 of licensee members had a complaint lodged against them in this period

In a positive outcome, the number of licensed financial firms with a complaint lodged against them was 5% lower than in the previous 12 months.

Financial difficulty icon

4,442 financial difficulty complaints received

Financial difficulty-related complaints fell 14%, from more than 5,000 the previous year, reflecting the work the banking sector has done to support consumers since the COVID pandemic. In the coming year, we’ll work with industry and consumer groups as we monitor the impact of cost-of-living pressures and higher interest rates on financial services consumers.

Systemic issues icon

Systemic issues

23 total serious contraventions and other breaches referred to regulators

$18 million in compensation provided to consumers (rounded)

Sometimes we identify through our work on individual complaints that there may be a wider, systemic issue. We collaborate with firms to help them address issues we identify, but there are occasions when we need to report a systemic issue to the relevant regulator. You can read more about our systemic issues work here.

Top five products most commonly complained about

Product

FY 2022

FY 2021

Credit cards

9,153

9,903

Personal transactions

7,416

5,758

Home loans

6,439

6,400

Home building insurance*

6,120

3,527

Motor vehicle - comprehensive

5,791

4,386

* New entry to top 5

Credit cards were the most complained about product in 2021-22, accounting for 13% of all complaints. But, despite topping the list for another year, complaints about credit cards were actually down 8% on the previous year.

However, complaints related to personal transaction accounts were up nearly 30%. Unauthorised transactions were the most significant issue in connection with transaction accounts, rising 45% to account for more than 2400 complaints for this product. Scams also contributed.

Natural disasters pushed home building insurance into the top 5 and drove a rise of about 30% in complaints regarding motor vehicle insurance.

Complaints received by product line

Image
Pie chart of complaints received by product line

Product line

FY 2022

FY 2021

Credit

37%

40%

General insurance

26%

23%

Deposit taking

15%

12%

Superannuation

7%

7%

Payment systems

7%

7%

Investments

5%

5%

Life insurance

3%

2%

Other

0%

0%

Complaints received by top five financial firm types

Image
Bar chart of complaints received by top five financial firm types

Top 5 financial firm types

FY 2022

FY 2021

Bank

28,339

26,281

General insurer

15,487

13,896

Credit provider

7,811

8,216

Superannuation fund trustee / advisor

3,765

3,643

Life insurer

1,962

2,115

Among the largest financial firms, the top 4 banks together accounted for nearly 20,000 complaints, a rise of nearly 10%, while the top 4 insurers together accounted for about 9,400 complaints, up 19%.

Complaints received by main product issues

Credit icon

Credit

Issue

FY 2022

FY 2021

Default Listing

3,397

3,738

Service quality

3,039

2,554

Financial firm failure to respond to request for assistance

2,713

2,678

Incorrect fees/costs

1,892

1,894

Repayment history information*

1,879

1,323

* New entry to top 5

Deposit taking icon

Deposit taking

Issue

FY 2022

FY 2021

Unauthorised transactions

3,430

2,375

Service quality

2,002

1,221

Interpretation of product terms and conditions

1,125

715

Mistaken internet payment

621

595

Failure to follow instructions/agreement*

489

335

* New entry to top 5

Payment systems icon

Payment systems

Issue

FY 2022

FY 2021

Unauthorised transactions

1,105

1,004

Service quality

639

603

Mistaken internet payment

573

417

Chargebacks - declined (consumer)*

330

117

Denial of claim

307

636

* New entry to top 5

General insurance icon

General insurance

Issue

FY 2022

FY 2021

Delay in claim handling

4,804

3,126

Claim amount

3,747

3,161

Denial of claim-exclusion/condition

3,111

3,146

Denial of claim

2,125

2,479

Service quality

1,503

1,164

Superannuation icon

Superannuation

Issue

FY 2022

FY 2021

Service quality

774

517

Delay in claim handling

737

856

Account administration error

506

487

Denial of claim

438

517

Claim amount*

342

362

* New entry to top 5

Investments and advice icon

Investments and advice

Issue

FY 2022

FY 2021

Interpretation of product terms and conditions*

654

100

Service quality

570

674

Failure to follow instructions/agreement

332

229

Failure to act in client's best interests

281

525

Inappropriate advice

241

534

* New entry to top 5

Life insurance icon

Life insurance

Issue

FY 2022

FY 2021

Misleading product/service information

437

109

Incorrect premiums

286

213

Interpretation of product terms and conditions*

234

45

Failure to act in client's best interests*

229

66

Service quality

205

141

* New entry to top 5

Complaints received by state

Image
Chart of complaints received by state

State

FY 2022

FY 2021

ACT

1,166

1,103

NSW

23,220

22,978

NT

476

462

Queensland

14,094

13,181

South Australia

4,364

3,814

Tasmania

920

894

Victoria

20,988

20,232

Western Australia

6,216

6,122

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