Complaints involving financial hardship drop in FY22

The Australian Financial Complaints Authority’s (AFCA) CEO David Locke has acknowledged the work banks have done to support consumers in recent years after complaints involving financial difficulty or financial hardship dropped in the 2022 financial year.

Speaking at an AFCA member forum on Wednesday, he said these claims had fallen from more than 5,000 in the previous financial year to nearly 4,500.

The number of financial firm licensee members with a complaint against them also fell – from 1,706 in FY21 to 1,628 in FY22.

“This is around 15 per cent of financial service provider licensee members, which also means 85 per cent received no complaints against them,” said Locke.

Locke noted that AFCA helped to resolve more than 71,000 complaints in FY22. During FY22, the most complained about products were about credit cards, personal transactions, home loans, home building insurance and motor vehicle insurance.

Around 5 per cent of complaints were lodged by small businesses, with the remaining complaints lodged by consumers.

In the coming year, Locke said AFCA will be working with the industry and consumer groups to monitor the impact of cost-of-living pressures and higher interest rates.