AFCA 2024–25 annual review: financial complaints ‘unacceptably high’
AFCA received 100,745 complaints in the 2024–25 financial year, a 4% decrease from the previous record high, but a volume that Chief Ombudsman David Locke stated is still “far too high.”
The Annual Review revealed that while complaints declined slightly, they surpassed 100,000 for the second consecutive year, underscoring ongoing issues within the financial sector. The surge in complaints was primarily driven by a 17% rise in general insurance (largely due to add-on insurance and claim delays) and an 18% jump in investments and advice matters. The increase in the advice sector was attributed to large-scale firm failures and a 124% increase in complaints about a failure to act in the client’s best interest. AFCA is urging financial firms to strengthen their internal dispute resolution processes and resolve customer issues earlier to prevent escalation. Read more here.
Policies affected: Complaint Handling Policies and Procedures
Organisations affected: AFSL holders dealing with retail clients.
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