AFCA's Chief Ombudsman, David Locke, has disclosed a stark increase in the number of complaints to over 100,000 within the last year, underscoring the intensity of issues plaguing consumers and small businesses today. Particularly worrying has been the surge in scam-related troubles, which have skyrocketed, with figures having nearly doubled before 2022 continues on an upward trajectory.
The feedback from Locke also reflects a broader spectrum of economic distress signals. These include a notable rise in complaints spurred by tighter fiscal conditions such as elevated interest rates and cost of living burdens, with an increasing number of consumers facing financial hardship.
Statistics illustrate a stark 23% jump to 102,790 complaints lodged in 2023, compared to prior periods, offering clear evidence of growing dissatisfaction or disputes with financial firms. Subsequently, consumers and businesses have managed to secure over $304 million in compensations and refunds — representing a 38% increase from the previous year, after resorting to AFCA's dispute resolution services.
The data indicates a dramatic 95% rise in scam-related complaints handled by AFCA, climbing from 4,611 instances in 2022 to a staggering 8,987 in the year following. Furthermore, the figures illuminate a burgeoning number of financial hardship complaints, witnessing a 29% rise to a total of 5,396 reported cases.
A detailed analysis of the subjects of these complaints reveals variances across the gamut of financial products under AFCA's umbrella—spanning banking, insurance services, investment advice, and superannuation. Complications surrounding financial advice, however, have not figured predominantly within the list of grievances.
Highlighting the most common issues faced by consumers and businesses recorded by AFCA, a list emerges with significant patterns, such as:
- Unsanctioned transactions
- Obstructions and delays in claim handling procedures
- Matters concerning quality of service
- Discrepancies regarding the amount claimed
- Outright denial of claim assertions
This comprehensive breakdown reflects the evolving concerns within the financial services landscape, suggesting a critical need for enhanced consumer protection measures and vigilant regulatory oversight to stem the rising tide of complaints.
