AFCA complaints cross 100,000 in a calendar year for the first time

The Australian Financial Complaints Authority (AFCA) received a record number of complaints in the 2023 calendar year recording more than 100,000 complaints for the first time since its creation in 2018. 

“The volume of complaints escalated to AFCA has been increasing at an unsustainable rate,” said David Locke, the Chief Ombudsman and Chief Executive Officer of AFCA. 

AFCA’s preliminary data snapshot revealed a significant increase in the number of complaints from consumers and small businesses. With the number of complaints rising by 23% compared to the previous year.  

“Scam-related complaints to AFCA have nearly doubled between 2022 and 2023. They continue to be of great concern to us. We are also seeing the impact of increased interest rates and cost of living pressures, with complaints involving financial hardship also significantly higher,” Mr Locke said. 

Mr Locke’s concerns are supported by the 2023 complaints data which shows scam-related complaints almost doubled in 2023. Of the 102,790 complaints received by AFCA, 8,987 related to scams, an increase of 95% from 2022. Financial hardship complaints also increased, with the snapshot revealing a 29% increase from the previous year.  

Claims related issues increased significantly with delays in claim handling, claim amount and denial of claim all placing in the top 5 most complained about issues for 2023. 

“As we head into the new year, our hope for 2024 is that this will be the year that anti-scam initiatives by industry and government finally disrupt this serious and organised crime,” Mr Locke said. 

Mr Locke expressed his concerns about the high number of disputes that were being escalated to AFCA, which he says is putting unnecessary pressure on the dispute resolution service and causing delays for consumers. 

“We also need to see a downward trend in complaints overall, with financial firms working better to support their customers and to address complaints quickly and efficiently in-house. We believe many financial firms could be doing a better job of handling complaints within their own internal complaints processes, so only the most complex cases reach AFCA – which is the role we are meant to play,” Mr Locke said.