The Australian Financial Complaints Authority (AFCA) has lifted the lid on the complaints that made their way to the non-government ombudsman service from when COVID-19 was declared a pandemic.
According to AFCA, it has received more than 3,180 coronavirus-related financial complaints – 1,070 of which involved general insurance; 1,430, banking and finance; and 610, superannuation.
The complaints were predominantly about loan break costs, disputed transactions, requests to extend payment terms, travel insurance claims rejections, and delays in superannuation early release.
“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,” AFCA chief operating officer Justin Untersteiner told members at an online forum this week.
“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.”
Untersteiner added that many are turning to their insurance policies to look for help at this time, with some cases leading to disputes in terms of coverage.
