The Australian Financial Complaints Authority (AFCA) has received more than 60,000 complaints and has awarded $145 million in compensations in during its first 10 months!
The MTA has been promoting AFCA as another avenue for customers of automotive repairers to forward complaints to and the number of calls, complaints and money awarded across Australia from a range of disputes demonstrates the power they have to generate an outcome.
AFCA can offer MTA Members and their customers an ability to resolve disputes when dealing with insurance matters that can be detrimental to customers. While AFCA is not a government department or agency, their rules were approved by ASIC in September last year.
Despite the new avenue for lodging complaints, AFCA’s Chief Ombudsman and CEO, David Locke has said that less than 1 in 2 people have actually lodged a complaint in relation to an issue they are facing.
David said, “Every day, we get about 650 people phone us and we are getting about 200 new complaints per day but our research shows that only 3 per cent of the population have heard of AFCA, which is probably not surprising given we are a new organisation.”
“We are also letting people know they have a one year window to lodge complaints dating back to 2008.”
AFCA recently found that an insurance company was bound, under the terms of its policy, to settle a policyholder’s claim in accordance with her preferred car repairer’s quote of $5,654.40, plus interest, marking a significant win for the repairer and highlighting the misconduct of an insurer. Click here to read about the determination.
If you would like more information on AFCA, please contact our Industry Engagement Specialist, Paul Back by clicking here.