Complainants lodged 10,009 complaints with AFCA in May 2024, up 4% from May 2023 (9,595). In FY24 to date, we have received 97,747 complaints, which is up 11% on the same period in FY23 (87,923). Banking and finance complaints (excluding financial difficulty) were down 3% year-on-year, while complaints involving financial difficulty were up by 3% compared to May 2023.

We also saw a 14% year-on-year increase in general insurance complaints, while life insurance complaints decreased by 4%.

AFCA closed 11,232 complaints in May 2024. About half (49% or 5,452) were closed at Registration and Referral, 17% at Rules (1,916 complaints), 30% at Case Management (3,382 complaints) and 4% at Decision (482 complaints).

Banking and finance

We received 5,009 banking and finance complaints in May, excluding complaints about financial difficulty. This was a 3% year-on-year decrease compared to May 2023 (5,153 complaints).

We saw an 3% year-on-year increase in complaints about financial difficulty (539). Financial firm failure to respond to requests for assistance was the most common issue accounting for 58% of these complaints.

Personal transaction account complaints continue to be the most common product complained about in banking and finance, representing 28% 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 (19%), followed by financial firm failure to respond to request for assistance (6%), and interpretation of product terms and conditions (6%).

AFCA received 836 scam complaints in May 2024, down 17% on the preceding 6-monthly average (1,011).

General insurance

There was a 14% year-on-year increase in general insurance complaints, from 2,738 in May 2023 to 3,128 in May 2024. Motor vehicle comprehensive complaints made up 35% of all general insurance complaints. This was followed by home building (26%) and consumer credit insurance (12%).

Consumer Credit Insurance (CCI) increased 159% in the month (from 147 to 380), and up 80% on the six-monthly average (211).

Delays in claim handling continues to represent the largest issue (29% of general insurance complaints). 49% of these related to comprehensive motor vehicle insurance. Claim amount was the second highest issue with 500 (16%), followed by denial of claim-Exclusion/condition with 342 (11%).

Superannuation

Superannuation complaints at AFCA decreased 25% in May 2024 when compared against May 2023, from 841 to 633 complaints.

Superannuation account was the most complained about product (60%), followed by total and permanent disability (19%) and income protection (12%).

Meanwhile, claim delay was the most complained about issue (21%), followed by account administration error (11%) and denial of claim (8%).

Investments and advice

Investments and advice complaints increased by 99% this May compared to the same period last year, from 178 to 354. Noting, 19% (66) of these complaints were related to Dixon Advisory.

Share complaints were the most common product complained about (representing 26% of investment and advice complaints), followed by self-managed superannuation fund (18%) and mixed asset funds (10%).

Meanwhile, failure to act in client’s best interest was the most complained about issue, accounting for 25% of investments and advice complaints. 53% of these complaints related to Dixon Advisory. This was followed by inappropriate advice (12%) and failure to follow instructions/agreement (10%).

Life insurance

Life insurance complaints decreased by 4% this May compared to the same period last year, from 129 to 124.

Income protection was the most complained about product (37%), followed total and permanent disability (21%) and term life (17%).

Claim delay was the most common issue (16%), followed by interpretation of product terms (10%) and denial of claim (10%).

Small business

We received 408 complaints from small businesses in May, which was up 5% from last month (390).

Business loans were the most complained about product (34%), followed by business transaction accounts (29%) and business credit card (8%).

Unauthorised transactions most common issue (10%), and up 39% from its 6-monthly average. This was followed by claim delay (7%), and failure to follow instructions/agreement (6%).