Australia’s Financial Complaints Reach Record High of Nearly 120,000

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Australia’s financial complaints reached a record high in the 2025–26 financial year, with the Australian Financial Complaints Authority (AFCA) receiving almost 120,000 complaints from consumers and small businesses.

AFCA Chief Ombudsman and CEO David Locke said the figures highlight the financial pressures facing Australians and the need for financial institutions to resolve customer concerns earlier.

Banking and finance accounted for more than half of all complaints, with 66,971 cases recorded. Scams and unauthorised transactions were the leading issues, generating 6,580 and 6,038 complaints respectively.

The Australian Scams Ombudsman, operated by AFCA, is scheduled to begin accepting complaints about banks, telecommunications companies and digital platforms from 31 March 2027.

General insurance complaints reached 36,022, marking the fifth consecutive year of growth. Motor vehicle insurance was the most complained-about product, accounting for 14,430 cases. AFCA also raised concerns about delays in claims handling and communication with customers.

Superannuation complaints increased by 42 per cent to 8,755. Complaints involving funds refusing to pay claims rose by 80 per cent compared with the previous financial year.

In the investments and financial advice sector, complaints were largely driven by the collapse of the Shield and First Guardian Master Funds, leaving affected investors facing continued uncertainty.

Complaints relating to financial hardship also increased by 17 per cent to 5,566. The main issue was financial firms failing to respond to requests for assistance.

AFCA also reported growing concerns about funeral insurance, particularly difficulties cancelling policies and unclear premium information. Complaints about life insurance remained broadly stable.

Locke urged financial institutions to identify customers experiencing hardship early, provide timely support and improve their internal complaint-handling processes.

He warned that complaints had already increased during the first quarter of the 2026–27 financial year. If the trend continues, AFCA could face an even higher number of cases next year.

More updates to come on AusNewsLanka.

Source : Press Released.