AFCA has published details of systemic issues identified by it in the second half of the 2023-24 financial year that it has reported to ASIC, APRA and other regulators such as the Office of the Australian Information Commissioner.
It listed the following common systemic issues:
Banking and finance
• Compliance with responsible lending obligations
• Compliance with AFCA Rules
• Privacy & credit reporting
• Financial Difficulty
General insurance
• Dealing with third-party representatives
• Dispute resolution
• Policy cancellation
• Add-on insurance
Life insurance
• Policy cancellation
Investments and advice
• AFCA approach to terms of settlement
Superannuation
• System error
• Non-compliance with Protecting Your Super (PYS) legislation
Small business
• Delays in claims handling
AFCA has also released its 2023-24 Annual Review, which highlights the increase in scam-related complaints.
The AFCA annual review for FY2024 shows a 12% increase in complaints in banking and finance. There were more complaints about personal transactions (16%) than credit cards (11%). This was largely driven by scam-related complaints.
With higher interest rates and increased costs of living pressure, complaints involving financial difficulty rose 18% in 2023-24. Home loan complaints accounted for one-third of those complaints.
Buy now pay later (BNPL) complaints rose 16%.
General insurance complaints rose 5%. Delays in claim handling were the largest source of complaints (25%) in that sector.
The top five banking and finance complaints related to unauthorised transactions, other types of scams, interpretation of product terms and conditions, service quality and incorrect fees and costs.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
