Home loan complaints made to AFCA dip
Home loan credit issues were the second most complained about matter in complaints lodged with the Australian Financial Complaints Authority (AFCA) in the past 12 months.
AFCA receives 70,000 financial complaints in 2020-21 with 9 percent (6300) on home loan credit matters.
Home loan issues stood at 13 percent of complaints in the prior financial year.
Overall complaints were down 12 per cent on 2019-20.
The most complained about money product was credit cards.
AFCA reviews consumer disputes with banks, insurers, super funds, investment firms and financial advisers.
It secured more than $240 million in compensation and refunds after consumers sought AFCA’s help, as well as outcomes such as fee waivers, debt forgiveness and apologies.
AFCA has now helped to secure more than $610 million in compensation and refunds, and over $220 million in remediation payments, since starting operation on 1 November 2018.
Individual consumers and small businesses can also access the free ombudsman service.
A preliminary data snapshot as of June 30 also shows that nearly 70 per cent of the 70,000 cases were resolved by agreement after AFCA brought the parties together, and that nearly 60 per cent of cases were resolved within 60 days.
The most complained about product in 2020-21 was credit cards, accounting for 14 per cent of all complaints, followed by home loans (9 per cent) and personal transaction accounts (8 per cent).
Home building insurance complaints rank among the top concerns.
With credit cards, the most common issues were default listings and unauthorised transactions – the latter accounting for 11 per cent of card complaints.
Government support, business relief measures and a steadying economy had a positive effect on complaint levels in 2020-21, including complaints involving financial difficulty, AFCA’s Chief Ombudsman, David Locke said.
“Significantly, complaints involving financial difficulty were down nearly 40 per cent from the numbers we saw the previous year,” Mr Locke said. “That’s a great outcome and reflects the positive response from government and industry to the impact of COVID.
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“However, it’s too early to say we’re out of the woods yet. It may be some months before we know the full impact of the end of government emergency support and assistance from financial firms such as deferred loan repayments."
Overall, complaints were down 12 per cent on 2019-20.
The Australian Financial Complaints Authority (AFCA) is a non-government ombudsman service providing free, fair and independent help with financial disputes.