AFCA releases 2019-20 Annual Review: A 14 Percent Increase of Complaints in the Monthly Average

The Australian Financial Complaints Authority (AFCA) has released its 2019-20 Annual Review, revealing the number of complaints received, the amount awarded to consumers in compensation and refunds, and the ombudsman's approach to the COVID-19 pandemic.  

According to the AFCA Annual Review, between 1 July 2019 and 30 June 2020 AFCA received 80,546 complaints from consumers and small businesses, which is a 14% increase in the monthly average compared to the last financial year. A majority of complaints (58%) lodged with AFCA in this period related to banking and finance. Credit cards were the most complained about product (with 11,628 complaints).

The ombudsman resolved 76,681 complaints during the 2019-20 financial year, and awarded or obtained $258.6 million in compensation or refunds to complainants.

Despite the increase in complaints, Chief Ombudsman and Chief Executive Officer David Locke said AFCA was able to resolve the majority of complaints quickly, with complaints taking an average of 73 days to reach an outcome.

“Speedy resolution allows consumers to get on with their lives, and AFCA's process is designed to support all parties to a complaint to reach an agreement as early as possible,” Mr. Locke said.

AFCA's Annual Review also outlines how the ombudsman approached the COVID-19 pandemic and worked with industry and regulators to support those with financial disputes.

“The coronavirus pandemic is one of the most challenging health and economic crises Australia has ever experienced,” Mr. Locke said. “It has had a significant impact on Australian consumers, small businesses, and the Australian financial services industry.”

About AFCA

The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes. Where an agreement cannot be reached between parties, AFCA can issue decisions that are binding on financial firms.