Complainants lodged 9,562 complaints with AFCA in January 2024, up 29% from January 2023 (7,420). In FY24 to date we have received 61,056 complaints, which is up 15% on the same period in FY23 (53,017). Banking and finance complaints (excluding financial difficulty) were up 38% year-on-year, while complaints involving financial difficulty were up by 36%.
We also saw a 23% year-on-year increase in general insurance complaints, while life insurance complaints increased by 13%.
AFCA closed 9,603 complaints in January 2024. More than half (61% or 5,841) were closed at Registration and Referral, 8% at Rules (767 complaints), 27% at Case Management (2,636 complaints) and 4% at Decision (359 complaints).
Banking and finance
We received 5,401 banking and finance complaints in January, excluding complaints about financial difficulty. This was a 38% year-on-year increase compared to January 2023 (3,926 complaints).
We saw a 36% year-on-year increase in complaints about financial difficulty (464). This was led by issues relating to ‘financial firm failure to respond to requests for assistance’, which made up 53% of all financial difficulty issues.
Personal transaction account complaints continue to be the most common product complained about, representing 30% of banking and finance complaints. This is followed by credit cards (19%) and personal loans (13%).
Unauthorised transaction issues represent the largest banking issue overall (25%), followed by interpretation of product terms and conditions (8%), and service quality (6%).
AFCA received 1,235 scam complaints in January 2024, which is the highest monthly volume since we began tracking these complaints in October 2020.
General insurance
There was a 23% year-on-year increase in general insurance complaints, from 2,040 in January 2023 to 2,503 in January 2024. Motor vehicle comprehensive complaints made up 38% of all general insurance complaints. This was followed by home building (25%) and travel insurance (9%)
Delays in claim handling continues to represent the largest issue (22% of general insurance complaints), followed by claim amount (18%) and denial of claim due to a policy exclusion or condition (13%).
Superannuation
Superannuation complaints saw a 5% year-on-year increase, from 514 complaints in January 2023 to 538 complaints in January 2024.
Superannuation account was the most complained about product (62%), followed by total and permanent disability (15%) and income protection (14%).
Meanwhile, claim delay was the most complained about issue (22%), followed by account administration error (12%) and service quality (9%).
Investments and advice
There was an 8% year-on-year decrease in investment and advice complaints (281 to 259).
Shares was the most common product complained about (representing 34% of investment and advice complaints). This was followed by self-managed superannuation funds (9%) and mixed asset funds (8%).
Meanwhile, inappropriate advice was the most complained about issue, accounting for 12% of investments and advice complaints, followed by firm failure to act in the client’s best interest (11%) and interpretation of product terms and conditions (10%).
Life insurance
Life insurance complaints increased by 13% this January compared to the same period last year, from 126 to 143.
Income protection was the most complained about product (32%), followed by term life (20%) and total and permanent disability (20%).
Income protection accounted for nine of the 21 claim delay complaints (43%), followed by total & permanent disability with five claim delay complaints (24%).
Small business
We received 336 complaints from small businesses in January, which was up 4% from last month (322).
Business loans were the most complained about product (34%), followed by business transaction accounts (32%) and commercial property (10%).
Unauthorised transactions was the most complained about issue (10%), followed by interpretation of product terms and conditions (9%) and financial firm failure to respond to a request for hardship assistance (8%).
