We recognise that many financial firms are struggling with multiple challenges as a result of the COVID-19 crisis. We are pleased to advise you of some temporary measures we are introducing to provide more time early in the dispute resolution process.

AFCA has been working with ASIC over the last couple of weeks to get authority to extend the post internal dispute resolution (post IDR) refer back period, to give you more time to respond to complaints lodged with us. The post IDR refer back timeframe will now be 30 days, which provides you with an additional 9 days for complaints. This also applies to all financial difficulty complaints. (Where matters have not been through IDR you will still have the relevant 45/90 days). This is in addition to the temporary introduction of a standard, 21-day timeframe to provide an initial response, once the dispute reaches our case management stage.

This will allow more time to resolve complaints using your internal dispute resolution practices, and where that can’t be achieved, it will provide more time to consult and communicate with your customers, and to locate the necessary documentation and information needed for AFCA to consider the matter. These changes will operate for six months and will be reviewed and adjusted as appropriate.
AFCA has been in daily contact with key stakeholders, peak bodies, regulators and government during the COVID-19 pandemic. We are working diligently to resolve the current matters we have and to ‘clear the decks’, so we can handle the anticipated flow on of complaint cases that insurers, banks and others tell us are likely to come down the track. 

This time extension will come into effect immediately.

As always, AFCA encourages financial firms to continue to work constructively with consumers and small businesses, particularly those facing hardship or having trouble repaying debt. Although the landscape continues to change, we remain steadfast in our support for our members and the community.