Complaint numbers surge above 80,000 for FY20

In data released on Thursday, AFCA revealed it had seen a 13.7 per cent increase in complaints compared with the 2019 year, with more than 80,000 complaints lodged by consumers in the last 12 months.

AFCA resolved 78 per cent of cases, with a majority being settled in 60 days or less. Seventy-three per cent of complaints were settled by agreement or in favour of the complainant, with banks being the most complained about financial institution.

AFCA chief executive and chief ombudsman David Locke said super was one of the most complained about categories of financial product for the 2020 year, and that COVID-related financial hardship had also played a significant role in the increase in complaints.

"Australian consumers have faced a number of significant challenges this year,” Mr Locke said.

“The pandemic has had a particular impact on Australian households, with 20 per cent of COVID-19 related complaints being about financial hardship. 

"One in 10 [general] complaints also related to financial difficulty – where a consumer was unable to make repayments on loans due to unforeseen circumstances or over-commitment."

Almost 800 complaints over the three months since the coronavirus crisis was declared a pandemic related to super, the majority of which were about handling of the government's early access scheme.

However, Mr Locke said the expected flood of COVID-related complaints had been less than the ombudsman anticipated, and that overall financial institutions had done a good job at responding to consumer hardship.

"We commend financial institutions for their quick response to the pandemic. As always, we encourage banks and insurers to maintain open and transparent communication with their customers about the support available to them if they’re experiencing financial difficulty," he said.