¹ AFCA commenced on 1 November 2018. The 2018–19 financial year covers an 8-month period (from 1 Nov 2018 to 30 Jun 2019). Year-on-year changes between 2018-19 and 2019-20 have been calculated pro rata using monthly averages.

² This excludes complaints that were inactive for an extended period, for example complaints that were paused because the financial firm was insolvent or due to court proceedings, and complaints that were previously closed and re-opened.

Paid representatives and AFCA’s service

We understand many complainants experience stress and, in some cases, financial strain. So our service is free and easy to access without the need for representation.

However, complainants sometimes prefer to have a representative help with their complaint, particularly when they need additional support due to illness, financial strain or disability. A representative can be a family member, friend, lawyer, financial counsellor or someone who offers to represent them for a fee. We call this last group paid representatives.

About paid representatives

A paid representative is any person or business that is paid to represent and assist a complainant. It does not include accountants, lawyers, financial counsellors or other representatives who have professional bodies to monitor their conduct.

Paid representatives can include, but are not limited to: 

• Debt management firms – which are firms that assist complainants with issues about consumer credit contracts for a fee, or who charge an amount that is payable in relation to a service. These firms are now regulated and must hold an Australian credit licence and be members of AFCA (ASIC Info 254).
• Insurance claims handling firms – representatives who provide claim handling and settling services about insurance products. These firms must hold an Australian credit licence and be members of AFCA (ASIC Info 253).
• Any other entity that charges a fee to assist a consumer to lodge a complaint at AFCA.

AFCA’s expectations of paid representatives

AFCA’s Engagement Charter summarises what it expects from all users of its service, including AFCA. It shares AFCA’s values and outlines the behaviour it expects from financial firms, complainants, representatives and AFCA employees when resolving disputes. 

AFCA expects paid representatives to conduct themselves at a higher standard than non-fee charging representatives. Under the AFCA Engagement Charter, all representatives, including paid representatives, are expected to:

• act in the best interests of the complainant and avoid conflicts of interest 
• act fairly and professionally towards AFCA and financial firms 
• avoid lodging complaints that are frivolous, vexatious or without merit 
• support the reasonable negotiation of complaints, including ensuring complainants attend AFCA telephone conciliation conferences 
• provide all relevant documentation that could reasonably be expected on initial lodgment of a complaint, including confirmation that the complainant is aware the complaint has been lodged at AFCA and authorises the representative to act on their behalf 
• cooperate with our investigations including facilitating provision and exchange of information and evidence, actively participate in the complaint resolution process and avoid unnecessary delays. 

Complaints should first be referred to the financial firm, so they can resolve the dispute without AFCA. Therefore, we also expect paid representatives to only make a complaint with AFCA after unsuccessful resolution in the financial firm’s IDR process. If the paid representative is unable to resolve the issue with the financial firm directly, they can then make a complaint with AFCA.

If our expectations are not met, and the conduct impacts the delivery of fair outcomes, it may be appropriate for AFCA to refuse to consider the complaint further under AFCA Rule C.2.2(g). See more about complaints outside AFCA’s Rules on page 116. 

As paid representatives are not required to access our services, the fee/s paid to the representative are not awarded as part of any compensation provided in the outcome of a complaint. 

AFCA has published more information about paid representatives on its website. This includes a guide on what information paid representatives should provide to AFCA when lodging complaints: afca.org.au/paid-representatives.