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73k financial complaints in 12 months
Unauthorised transactions by banks, issues with credit reporting and responsible lending, incorrect superannuation fees and dodgy claim insurance handling have all made the list of most common complaints against financial services providers this year.
73k financial complaints in 12 months
Unauthorised transactions by banks, issues with credit reporting and responsible lending, incorrect superannuation fees and dodgy claim insurance handling have all made the list of most common complaints against financial services providers this year.
nestegg has previously reported on the Australian Financial Complaints Authority’s (AFCA) awarding of $185 million in payouts from 73,272 complaints in its inaugural year of operation.
We can now reveal a breakdown of all the types of complaints received by the authority.
Of all complaints filed, AFCA said the largest number were directed at the banks (25,826), followed by general insurers (14,139) and credit providers (10,327).
Superannuation fund trustees or advisers came in fourth highest, with 2,999 complaints directed to them, while debt collectors and buyers came in fifth with 2,902 complaints.
According to AFCA, the large number of complaints has led to its current investigation of 50 systemic issues.
It has also identified 30 “potential serious contraventions” since it began operating in November last year.
Here’s a full breakdown of the complaints by type:
Credit (44 per cent total complaints)
- Credit reporting – 5,225 complaints
- Responsible lending – 3,293 complaints
- Financial firm failure to respond to assistance request – 2,714 complaints
- Incorrect fees or costs – 1,952 complaints
- Misleading product or service information – 1,779 complaints
General Insurance (6 per cent total complaints)
- Claim amount – 3,087 complaints
- Delay in claim handling – 3,029 complaints
- Denial of claim for exclusion or condition – 2,505 complaints
- Denial of claim – 2,125 complaints
- Service quality – 1,064 complaints
Deposit Taking (9 per cent total complaints)
- Unauthorised transactions – 1,836 complaints
- Service quality – 602 complaints
- Mistaken internet payment – 408 complaints
- Failure to follow instructions or an agreement – 352 complaints
- Interpretation of product terms and conditions – 327 complaints
Superannuation (9 per cent total complaints)
- Incorrect fees or costs – 873 complaints
- Delay in claim handling – 770 complaints
- Account administration error – 492 complaints
- Denial of claim – 437 complaints
- Claim amount – 402 complaints
Payment Systems (6 per cent total complaints)
- Unauthorised transactions – 880 complaints
- Denial of claim – 705 complaints
- Mistaken internet payment – 479 complaints
- Service quality – 277 complaints
- Incorrect fees and costs – 191 complaints
Investments (5 per cent total complaints)
- Failure to follow instructions or an agreement – 973 complaints
- Inappropriate advice – 540 complaints
- Failure to act in the client’s best interests – 352 complaints
- Incorrect fees and costs – 330 complaints
- Misleading product or service information – 206 complaints
Life Insurance (2 per cent total complaints)
- Denial of claim – 237 complaints
- Incorrect premiums – 203 complaints
- Delay in claim handling – 159 complaints
- Claim amount – 131 complaints
- Cancellation of policy – 118 complaints
Have you made a claim with the Australian Financial Complaints Authority? nestegg would love to hear about your experience with the service. Contact us confidentially here.
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