The Australian Financial Complaints Authority (AFCA) has refreshed its Datacube, a publicly accessible tool that provides detailed information about complaints lodged against financial firms.
This latest update incorporates data for firms with at least four complaints recorded between July 1, 2023, and June 30, 2024.
The Datacube, launched in November 2018, enables users to search by firm name or filter data by firm type, product category, service type, or location.
It is designed to assist financial firms in assessing their performance relative to industry peers and to help consumers and small businesses make informed decisions when selecting financial products or services.
AFCA stated that the Datacube is part of its commitment to improving transparency and ensuring that complaints data is accessible and useful for stakeholders.
“The data gives member firms a statistical understanding of how they compare within their industries. It can also help consumers and small businesses make informed choices when sourcing financial products and services,” it said.
AFCA is also seeking input on two approach documents designed to provide guidance on resolving common general insurance disputes. The public consultation period runs from Nov. 6-27.
One document, “The AFCA Approach to Non-Disclosure and Misrepresentation,” has been updated to reflect legislative changes introduced in 2021.
The other, a new document titled “The AFCA Approach to the Duty to Take Reasonable Care Not to Make a Misrepresentation,” outlines how AFCA evaluates cases where consumers may have unintentionally provided incomplete or inaccurate information.
AFCA said that the documents outline how it applies legal principles, regulatory requirements, and industry codes to ensure consistency in how complaints are handled.
It invites interested parties to review the documents and submit feedback through its website.
AFCA enhanced Datacube and insurance complaint guidelines amid a significant rise in complaints related to financial hardship, particularly in areas such as personal loans, credit cards, and home loans.
These complaints increased by 18%, with many consumers expressing dissatisfaction over poor communication or inadequate support from financial institutions during challenging financial periods.
In the general insurance sector, complaints also climbed, driven in part by rising premiums for car and home insurance. AFCA observed that while costs for consumers are increasing, some insurers have yet to enhance their complaint resolution systems or invest in improving customer experiences.
AFCA CEO and chief ombudsman David Locke encouraged insurers to adopt more proactive approaches to resolving complaints, particularly in cases involving customers experiencing financial stress.
