Complaints lodged by consumer advocates and financial counsellors

Consumer advocates and financial counsellors play an important role at AFCA. They represent people throughout their complaint free of charge, as well as referring people directly to AFCA for help.

Referrals from these stakeholders provide a vital pathway for people who may be experiencing difficult circumstances, and who may not have been aware of our service.

There were 3,418 complaints referred to AFCA by consumer advocates in 2021–22, which was a 20% increase on the previous year.

There were an additional 840 complaints lodged by consumer advocates on behalf of complainants during the same period, which was a 13% increase on the previous year. The percentage of complaints submitted by financial counsellors remained similar to the previous year at almost 60%. Significantly, a third of complaints lodged by consumer advocates were on behalf of First Nations peoples, which is largely attributable to the large number of complaints about the Youpla Group (see here for more information).

People experiencing difficult circumstances

Sixteen per cent of complaints lodged by consumer advocates were for people experiencing difficult circumstances, or who needed additional help to understand and stay engaged with the complaints process.

The better we understand an individual’s circumstances, the better we can tailor our service:

• Family violence – victim-survivors of family violence may be experiencing severe trauma and/or financial hardship as a result of financial abuse and may also be at risk of homelessness.
• Other help needed – this can include a range of circumstances that require consideration about how we conduct the complaints process, including for people who are incarcerated.
• Mental health condition – people can experience generalised stress and anxiety as a result of financial difficulty or chronic pain, or may even be experiencing suicidal ideation. They may also suffer from a range of mental health conditions, including post-traumatic stress syndrome.
• Literacy – we can engage wholly over the phone to ensure there are no misunderstandings as a result of low literacy or numeracy.
• Cognitive condition – people who report they have a cognitive condition let us know they need help to understand words and concepts and, in some cases, may find it difficult to manage strong emotions, such as anger. We work together with the authorised representative to explain complex legal and financial documents.

Complaints lodged by consumer advocates

Complaints referred to AFCA by consumer advocates

Compensation amounts awarded

Stage at which complaints closed

Total	2020–21	2021–22
Before referral	5	4
Registration and Referral	258	194
Jurisdictional review	32	36
Case management 1	89	105
Case management 2	84	81
Preliminary Assessment	34	26
Decision	30	25

 

¹ This category includes faith-based organisations, charities, disability, migrant, multicultural, youth and other specialist advocacy services

Complaints lodged by consumer advocates

Complaints lodged by financial counsellors

Stage at which complaints closed

Total	2020–21	2021–22
Before referral	1	2
Registration and Referral	185	158
Jurisdictional review	18	24
Case management 1	64	69
Case management 2	61	66
Preliminary Assessment	17	17
Decision	13	5

Complaints lodged by financial counselling organisations

Geographic spread of complaints lodged by financial counsellors

State /Territory	2020–21	2021–22
ACT	2%	1%
NSW	12%	13%
NT	3%	5%
QLD	12%	20%
SA	7%	6%
TAS	2%	3%
VIC	50%	39%
WA	11%	14%

Top 12 financial firms in complaints lodged by financial counsellors

Financial firm	Total
Youpla Group	50
Commonwealth Bank of Australia	43
National Australia Bank Limited	24
Australia and New Zealand Banking Group Limited	22
Citigroup Pty Limited	18
Latitude Finance Australia	18
Toyota Finance Australia Limited	14
Westpac Banking Corporation	13
Ausfinancial Pty Ltd	10
AAI Limited	7
Bendigo and Adelaide Bank Limited	7
Money3 Loans Pty Ltd	7

Complaints lodged by community-based lawyers

Stage at which complaints closed

Total	2020–21	2021–22
Before referral	1	2
Registration and Referral	56	29
Jurisdictional review	11	9
Case management 1	17	30
Case management 2	22	9
Preliminary Assessment	14	7
Decision	15	20

Top 11 financial firms in complaints lodged by community-based lawyers

Financial firm	2021–22
Youpla Group	202
CBA	9
Insurance Australia Limited	6
AAI Limited	5
ANZ	5
Westpac	5
Jacaranda Finance	3
NAB	3
OnePath Life	3
TAL Life	3
Toyota Finance	3

Complainants lodged by community-based lawyers organisations

¹ 188 of these complaints related to funeral insurance.

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