We recently alerted members to the fact that 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!
Despite this though, 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.”
Who is AFCA and how can they help you and your customers with disputes in relation to insurance or credit card companies, superannuation or banks?
Anyone who has an unresolved complaint with an insurance company or financial firm can lodge a complaint with AFCA, if that firm is a member of AFCA.This could include complaints from individuals, small businesses, partnerships or associations.
AFCA deals with denials of insurance claims, finance, and errors in banking transactions, inappropriate investment or superannuation advice.
In particular, if your customers are currently having a dispute with an insurance company, we encourage you to forward this article to them and start the complaint process with AFCA by going to afca.org.au/make-a-complaint/
AFCA is even accepting complaints about the conduct of insurance companies and financial firms dating back to 1 January 2008, however this is only until 30 June 2020. Beyond this date, there will be a 28 day limit to make a complaint.
If MTA members have any questions in relation AFCA, click here to contact the MTA’s Industry Engagement Specialist, Paul Back.