AFCA to accept legacy financial complaints from 1 July 2019

From 1 July 2019, small businesses with complaints about loans under $5 million, going back to 1 January 2008 and who haven’t had their case heard by the Financial Ombudsman Service or a court, will have one year to apply to AFCA to review their case.

This change means that many more people will be able to get access to justice and have their matters properly considered, AFCA said late last week.

The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed AFCA’s extended remit for small businesses.

"This is a step in the right direction as AFCA currently only takes complaints going back six years," Ms Carnell said.

She, however, judged that it is unfortunate that AFCA is bound by the $5 million limit.

"We know of a range of cases where the small business loan was over this amount and those businesses have nowhere to go - no access to justice," Ms Carnell said.

She added that the ASBFEO will continue to put pressure on the government to adopt recommendations from Ramsay’s supplementary report on a scheme for these small businesses, that includes options such as an independent forum to hear past disputes or government supported legal funding.

"These businesses don’t have the resources to take financial misconduct to court and they deserve justice too,"

"We look forward to contributing to the consultation regarding the changes to AFCA’s rules and to better understand the eligibility requirements," Ms Carnell concluded.