More than 3,000 complaints relating to COVID-19

Speaking to members at an online forum on Tuesday, chief operating officer Justin Untersteiner revealed the COVID-19-related complaints included 1,430 banking and finance complaints, 1,070 general insurance complaints and 610 superannuation complaints. 

According to AFCA, common themes include loan break costs, disputed transactions, requests to extend payment terms, denial of travel insurance claims as well as delays in early release of superannuation. 

As a result, Mr Untersteiner has urged financial firms to provide early, proactive communication with consumers.

“Many of these complaints result from poor communication, where a consumer has trouble contacting their firm, does not understand their policy or is confused about the information they receive,” he said. 

“To support consumers, we encourage financial firms to ensure their contact details and resources are visible and accessible and allow for genuine engagement with customers to resolve issues early on.”

Mr Untersteiner said AFCA anticipates more financial difficulty complaints in the next six to 18 months. 

“We expect to see more complaints from vulnerable consumers or others who struggle to repay mortgages or other debts as government and sector support initiatives come to an end,” he said.

“This won’t just be an issue for banking and finance; many will turn to their insurance policies to look for help, and in some cases, they will not be covered, which will lead to disputes.”

Mr Untersteiner also noted there will be an increase in responsible lending complaints, disputes relating to scams and a rise in business interruption insurance complaints. He also anticipates additional complaints relating to early access to superannuation from June to September.

During the forum on Tuesday, Mr Untersteiner discussed AFCA’s unique view of the challenges facing the industry and how data can be used to help financial firms see current trends so that they can address problems and reduce complaints.

“We encourage financial firms to minimise COVID-19-related disputes by communicating with consumers early, speaking in plain English, proactively setting customer expectations around delays, reviewing internal dispute resolution processes and regularly engaging with AFCA,” he said.