The Australian Financial Complaints Authority (AFCA) has received more than 100,000 complaints for the second consecutive year, despite a slight dip in total volumes.
AFCA reported 100,745 financial complaints in 2024-25, down 4% from last year’s record 104,861.
While the decline was welcomed, AFCA chief ombudsman and CEO David Locke (pictured) said the number remained far too high.
“The movement is in the right direction, but receiving 100,000 complaints in a year is still unacceptably high,” Locke said in a media release.
“We’ve now had three years of high complaints. Firms have more work to do to ensure fair responses to complaints are delivered earlier, without people having to take the extra step of coming to us.”
Banking and finance complaints fell 9% to 54,581, thanks in part to a 45% drop in scam-related cases. However, other sectors saw increases:
AFCA highlighted that personal transaction accounts, motor vehicle insurance, and credit cards were the most complained-about products in 2024-25. The top three issues were misleading product or service information, delays in insurance claim handling, and service quality.
Scam complaints fell significantly but remain a key concern.
“Whilst any decline is positive... caution should be exercised in interpreting AFCA’s scam numbers,” Locke said.
“We urgently need mandatory industry codes and further action from all to prevent, protect, and respond to scams. This evil trade causes so much human harm, and the law and regulatory framework we currently have is not sufficient.”
AFCA recently completed a public consultation on proposed rule changes to strengthen scam response powers – including authority over receiving banks involved in scam fund transfers. Deputy chief ombudsman June Smith said the move would promote “fairness, transparency, and accountability of all banking participants in the transaction chain.”
Complaints in the investments and advice space surged following the collapse of several providers including United Global Capital, Shield Master Fund, First Guardian Master Fund, and Brite Advisors.
AFCA saw a 95% rise in self-managed super fund (SMSF) complaints, now accounting for a third of all complaints in this category. Alleged failures to act in a client’s best interest rose 124%.
“What we’re seeing in complaints is a clear pattern of conflicted advice models and the inappropriate use of self-managed super funds that ultimately isn’t in the customer’s best interest,” Locke said.
“This only highlights the need for the Compensation Scheme of Last Resort for victims of unlawful advice.”
Add-on insurance drove much of the general insurance complaint increase, though vehicle insurance remains the most disputed product.
“Delays in motor vehicle insurance claims are increasingly driven by industry-wide shortages in parts and skilled labour,” Locke said.
“To maintain trust, insurers must effectively communicate these challenges transparently and proactively, helping customers navigate the wait with clarity and confidence.”
Locke acknowledged improvements in superannuation claims, with complaints about delays falling 39% this year. Still, service quality remains a concern.
“The reduction in superannuation complaints is a positive sign that improvements are being made,” he said. “But we’re still concerned that the top three issues relate to service quality.”
Since launching in 2018, AFCA has handled around 570,000 complaints and facilitated $1.8 billion in refunds or compensation. Its systemic issues program has resulted in $392 million returned to 5.4 million people.
AFCA’s full annual review will be released later this year.
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