Latest news with #AustralianFinancialComplaintsAuthority
The Advertiser
23-07-2025
- Automotive
- The Advertiser
Australia's frustration with motor insurance grows
Australians are fed up with motor vehicle insurance, with complaints about stalled claims surging as parts and labour shortages drag on repair times. Motor insurance was Australia's most maligned financial product in 2024, with total complaints jumping by a third in the year to June 30, 2025, according to the Australian Financial Complaints Authority. "A lot of issues there around shortages in both labour and parts are impacting that, but clearly there's a lack of communication and really helping consumers through that period," AFCA chief ombudsman David Locke told AAP. Consumer credit insurance complaints jumped 184 per cent, which included add-on products such as loan termination insurance, tyre insurance, and coverage for missed payments. "Some of this was covered in the banking royal commission years ago, and we're still dealing with some some of these complaints," Mr Locke said. Total insurance complaints surged 17 per cent to more than 34,000, while complaints about financial or investment advice jumped 18 per cent to 4200, after the collapse of several investment funds now under investigation by the Australian Securities and Investments Commission. "We've seen examples of advisers recommending products because of financial incentives, particularly around self-managed super funds," Mr Locke said. The authority reported 100,745 complaints in 2024/25, an easing from a record of nearly 105,000 the year before. "This number is still way too high, and financial firms need to do a better job of resolving issues," Mr Locke said. Banking and finance complaints fell nine per cent to roughly 54,600, helped by a near-halving of scam-related complaints on the year before. Superannuation complaints fell by 16 per cent to 6164, as issues around claim handling delays dropped by 39 per cent. "The reduction in superannuation complaints is a positive sign ... but we're still concerned that the top three issues relate to service quality and we urge superannuation funds to improve service standards," Mr Locke said. The authority has received roughly 570,000 complaints since it was established in 2018 following the Royal Commission into Banking, Superannuation and Financial Services, and has since helped consumers secure 1.8 billion in compensation or refunds. Australians are fed up with motor vehicle insurance, with complaints about stalled claims surging as parts and labour shortages drag on repair times. Motor insurance was Australia's most maligned financial product in 2024, with total complaints jumping by a third in the year to June 30, 2025, according to the Australian Financial Complaints Authority. "A lot of issues there around shortages in both labour and parts are impacting that, but clearly there's a lack of communication and really helping consumers through that period," AFCA chief ombudsman David Locke told AAP. Consumer credit insurance complaints jumped 184 per cent, which included add-on products such as loan termination insurance, tyre insurance, and coverage for missed payments. "Some of this was covered in the banking royal commission years ago, and we're still dealing with some some of these complaints," Mr Locke said. Total insurance complaints surged 17 per cent to more than 34,000, while complaints about financial or investment advice jumped 18 per cent to 4200, after the collapse of several investment funds now under investigation by the Australian Securities and Investments Commission. "We've seen examples of advisers recommending products because of financial incentives, particularly around self-managed super funds," Mr Locke said. The authority reported 100,745 complaints in 2024/25, an easing from a record of nearly 105,000 the year before. "This number is still way too high, and financial firms need to do a better job of resolving issues," Mr Locke said. Banking and finance complaints fell nine per cent to roughly 54,600, helped by a near-halving of scam-related complaints on the year before. Superannuation complaints fell by 16 per cent to 6164, as issues around claim handling delays dropped by 39 per cent. "The reduction in superannuation complaints is a positive sign ... but we're still concerned that the top three issues relate to service quality and we urge superannuation funds to improve service standards," Mr Locke said. The authority has received roughly 570,000 complaints since it was established in 2018 following the Royal Commission into Banking, Superannuation and Financial Services, and has since helped consumers secure 1.8 billion in compensation or refunds. Australians are fed up with motor vehicle insurance, with complaints about stalled claims surging as parts and labour shortages drag on repair times. Motor insurance was Australia's most maligned financial product in 2024, with total complaints jumping by a third in the year to June 30, 2025, according to the Australian Financial Complaints Authority. "A lot of issues there around shortages in both labour and parts are impacting that, but clearly there's a lack of communication and really helping consumers through that period," AFCA chief ombudsman David Locke told AAP. Consumer credit insurance complaints jumped 184 per cent, which included add-on products such as loan termination insurance, tyre insurance, and coverage for missed payments. "Some of this was covered in the banking royal commission years ago, and we're still dealing with some some of these complaints," Mr Locke said. Total insurance complaints surged 17 per cent to more than 34,000, while complaints about financial or investment advice jumped 18 per cent to 4200, after the collapse of several investment funds now under investigation by the Australian Securities and Investments Commission. "We've seen examples of advisers recommending products because of financial incentives, particularly around self-managed super funds," Mr Locke said. The authority reported 100,745 complaints in 2024/25, an easing from a record of nearly 105,000 the year before. "This number is still way too high, and financial firms need to do a better job of resolving issues," Mr Locke said. Banking and finance complaints fell nine per cent to roughly 54,600, helped by a near-halving of scam-related complaints on the year before. Superannuation complaints fell by 16 per cent to 6164, as issues around claim handling delays dropped by 39 per cent. "The reduction in superannuation complaints is a positive sign ... but we're still concerned that the top three issues relate to service quality and we urge superannuation funds to improve service standards," Mr Locke said. The authority has received roughly 570,000 complaints since it was established in 2018 following the Royal Commission into Banking, Superannuation and Financial Services, and has since helped consumers secure 1.8 billion in compensation or refunds. Australians are fed up with motor vehicle insurance, with complaints about stalled claims surging as parts and labour shortages drag on repair times. Motor insurance was Australia's most maligned financial product in 2024, with total complaints jumping by a third in the year to June 30, 2025, according to the Australian Financial Complaints Authority. "A lot of issues there around shortages in both labour and parts are impacting that, but clearly there's a lack of communication and really helping consumers through that period," AFCA chief ombudsman David Locke told AAP. Consumer credit insurance complaints jumped 184 per cent, which included add-on products such as loan termination insurance, tyre insurance, and coverage for missed payments. "Some of this was covered in the banking royal commission years ago, and we're still dealing with some some of these complaints," Mr Locke said. Total insurance complaints surged 17 per cent to more than 34,000, while complaints about financial or investment advice jumped 18 per cent to 4200, after the collapse of several investment funds now under investigation by the Australian Securities and Investments Commission. "We've seen examples of advisers recommending products because of financial incentives, particularly around self-managed super funds," Mr Locke said. The authority reported 100,745 complaints in 2024/25, an easing from a record of nearly 105,000 the year before. "This number is still way too high, and financial firms need to do a better job of resolving issues," Mr Locke said. Banking and finance complaints fell nine per cent to roughly 54,600, helped by a near-halving of scam-related complaints on the year before. Superannuation complaints fell by 16 per cent to 6164, as issues around claim handling delays dropped by 39 per cent. "The reduction in superannuation complaints is a positive sign ... but we're still concerned that the top three issues relate to service quality and we urge superannuation funds to improve service standards," Mr Locke said. The authority has received roughly 570,000 complaints since it was established in 2018 following the Royal Commission into Banking, Superannuation and Financial Services, and has since helped consumers secure 1.8 billion in compensation or refunds.
Perth Now
22-07-2025
- Automotive
- Perth Now
Australia's frustration with motor insurance grows
Slow processing of vehicle insurance claims helped make it the most maligned financial product. (Dan Peled/AAP PHOTOS) Slow processing of vehicle insurance claims helped make it the most maligned financial product. (Dan Peled/AAP PHOTOS) Credit: AAP Australians are fed up with motor vehicle insurance, with complaints about stalled claims surging as parts and labour shortages drag on repair times. Motor insurance was Australia's most maligned financial product in 2024, with total complaints jumping by a third in the year to June 30, 2025, according to the Australian Financial Complaints Authority. "A lot of issues there around shortages in both labour and parts are impacting that, but clearly there's a lack of communication and really helping consumers through that period," AFCA chief ombudsman David Locke told AAP. Consumer credit insurance complaints jumped 184 per cent, which included add-on products such as loan termination insurance, tyre insurance, and coverage for missed payments. "Some of this was covered in the banking royal commission years ago, and we're still dealing with some some of these complaints," Mr Locke said. Total insurance complaints surged 17 per cent to more than 34,000, while complaints about financial or investment advice jumped 18 per cent to 4200, after the collapse of several investment funds now under investigation by the Australian Securities and Investments Commission. "We've seen examples of advisers recommending products because of financial incentives, particularly around self-managed super funds," Mr Locke said. The authority reported 100,745 complaints in 2024/25, an easing from a record of nearly 105,000 the year before. "This number is still way too high, and financial firms need to do a better job of resolving issues," Mr Locke said. Banking and finance complaints fell nine per cent to roughly 54,600, helped by a near-halving of scam-related complaints on the year before. Superannuation complaints fell by 16 per cent to 6164, as issues around claim handling delays dropped by 39 per cent. "The reduction in superannuation complaints is a positive sign ... but we're still concerned that the top three issues relate to service quality and we urge superannuation funds to improve service standards," Mr Locke said. The authority has received roughly 570,000 complaints since it was established in 2018 following the Royal Commission into Banking, Superannuation and Financial Services, and has since helped consumers secure 1.8 billion in compensation or refunds.
West Australian
12-06-2025
- Business
- West Australian
ASIC boss Joe Longo warns trouble for super trustees who ignore his readings of the riot act
Australian Securities and Investment Commission boss Joe Longo has threatened trouble for superannuation fund trustees who fail to heed warnings to lift their game. After a swathe of negative reports and launching legal actions against high profile funds, Mr Longo said his team had read the riot act to an industry holding the trust and savings of millions of Australians. He claimed none of the trustees of 10 funds caught up in a recent review of death benefits claims had performance objectives for the end-to-end handling times, nor did they monitor this performance. Mr Longo told a regulator's lunch that the super industry had a 'solemn responsibility to protect the interests of all Australians, and to give them every confidence their money will be there, readily available, when it's needed'. 'To the extent that some trustees aren't across the data, systems, and processes of their funds, they're failing to live up to that solemn responsibility,' the ASIC chair said. And there would be trouble for any trustees 'who fail to know their business, inside and out, and to act in the best interests of their members'. Releasing its review of death benefit handling in March, ASIC said it found many examples of excessive delays and poor service, ineffective and insensitive communications and inadequate support for vulnerable claimants. That review was triggered by a tripling in super customers seeking help from the Australian Financial Complaints Authority between 2021 to 2022. ASIC reported what is described as a 'huge variation' in claims handling times across the 10 funds targeted. ASIC claimed 78 per cent of claim files had delays caused by processing issues within the control of fund trustees. Mr Longo said ASIC's work had laid bare governance challenges at super funds and exposed trustee blind spots around their data, systems and processes. The next phase of his agency's work with funds would involved addressing these boardroom blind spots. 'Our focus is on how trustees learn from — and respond to — the complaints they receive,' he said. 'No business can thrive without understanding the people it serves. To do this, it needs market feedback. And a primary source of this feedback is – and always will be – customer complaints. 'If you don't have the right information to make good judgements, you simply cannot govern effectively. It's that fundamental.'
Yahoo
18-04-2025
- Business
- Yahoo
Cash boost extended as Aussies urged to 'act now' to get up to $144,000: 'Blown away'
Australians are being urged to act now after a deadline to apply for a huge cash boost was extended. Aussies had until February 4 to check if they were entitled to compensation or a refund if they took out dodgy junk insurance. But the Australian Financial Complaints Authority (AFCA) has now pushed that deadline back to June 30. Pensioner Donna recently applied through Claimo to see if she was owed anything and was shocked when she received $11,000 back. "I was blown away," she told Yahoo Finance. "The pension isn't much to live on and we're still paying our house off, so this has made things a bit easier." Insurance giant set to pay $170 million to thousands of Aussies: 'Significant' ATO warning for every Aussie who plays lottery after $70 million Oz Lotto jackpot Pay rise coming for half a million Aussies after 'landmark' ruling: 'Up to 35 per cent' For decades, when Aussies applied for credit cards, personal loans and mortgages, they were convinced to pay for insurance to support the credit. However, many of these financial institutions neglected to mention that this insurance was entirely optional. The value of the insurance on the loan was bundled into the total amount of the loan, which substantially increased the payable interest, and caused loans to take up to a third longer to pay took out a personal loan with NAB around 17 years ago and thought the insurance was legitimate. But Claimo looked into her case over a few months this year and found she was entitled to compensation as a result of the junk insurance. Claimo is one of several companies that have been investigating these policies for Aussies who were caught up in the strategy, which was officially outlawed after a Royal Commission. "Banks were incentivised in commissions to sell these insurances without fully understanding what impact they could have on consumers," Nikola Araouzou, Claimo co-founder, told Yahoo Finance. "So we did see a lot of consumers who are unable to benefit from these policies being sold to them." While Donna's $11,000 result is impressive, Araouzou said the biggest win to date has been $144,000. "If there's a charge that you don't recognise, it might be called consumer credit insurance, mortgage protection insurance, credit card insurance, something like that, then you need to lodge a complaint with your bank about that charge," she told Yahoo Finance. The co-founder said some of the wins had been "life-changing" for recipients. Victorian resident Karen Wright was able to get back nearly $15,000 after having junk insurance attached to three separate personal loans a few decades ago. "When the payout happened, I couldn't believe it. That's quite a lot of money when you think about it," she told Yahoo Finance. "I'm very happy with that extra little help that I've got because today is pretty tough living." Teena and her husband Troy knew something wasn't quite right when they noticed their home loan balance wasn't reducing despite their regular payments. "We tried to get out of the insurance, but it was so hard,' Teena said. The NSW couple ended up getting a refund of $111,159. 'It's going straight on the mortgage and will mean we will have our home paid off in the next year or so instead of in the next 10 or 20, it's life-changing," she said. AFCA has revealed the June 30 deadline will be the "last date" for people to lodge their complaint about junk insurance. The Authority said if you believe you bought this type of insurance before July 2019, "now is the time to act". 'It's important that consumers know this deadline is fast approaching,' AFCA's lead ombudsman for insurance, Emma Curtis, said. You can ask your lender to investigate if you had any junk insurance, or you can go through a company like Claimo. But be aware that Claimo take 30 per cent of your payout as a fee. A poll of more than 4,400 Yahoo Finance readers found 60 per cent of people weren't sure whether they had signed up for junk insurance in the past. Donna said it was worth checking if you aren't sure, as you could end up with tens of thousands of dollars in your in to access your portfolio
