Latest news with #AFCA
The Advertiser
2 days ago
- 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.
ABC News
2 days ago
- Business
- ABC News
Growing number of scammers stealing superannuation
The Australian Financial Complaints Authority has received more than 100,000 complains in the last year about malpractice in the finance industry.
Perth Now
2 days ago
- 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.
The Advertiser
10-06-2025
- Business
- The Advertiser
'Buy now, pay later' services have been overhauled. What it means for you
Buy Now Pay Later (BNPL) services will be strictly regulated in a major shakeup of the payment service from June 10. BNPL services, such as Zip, StepPay and Afterpay, allow consumers to buy goods or services with credit and then repay the loan over interest-free instalments. Customers will be subject to a credit check and questions about outstanding debts to prevent them from taking on repayments they cannot afford. READ MORE: 'Hardly slept all night': $70 million lotto winner plans to retire immediately Additionally, providers will require a credit licence from ASIC, be a member of the external dispute resolution scheme AFCA, give reasonable consideration to hardship requests and introduce caps on the maximum permitted default fees. ASIC commissioner Alan Kirkland said the reforms were an "important step". "We strongly encourage buy now pay later providers who do not already have the appropriate credit licence to apply for one as soon as possible," Mr Kirkland said. "Providers who do not have their credit licence application accepted for lodgement by ASIC by 10 June 2025 may be engaging in unlicensed conduct if they continue to operate." National Consumer Law Centre senior policy officer Rose Bruce-Smith said the changes set "a floor of consumer protection". "It is a lighter touch regime than the full credit act, which is enforced for home loans, credit cards, everything else that is regulated." Ms Bruce-Smith noted it had been ten years of Buy Now Pay Later services as a "fully unregulated credit product where customer outcomes were left to the private market", so any regulation was welcome. Buy Now Pay Later (BNPL) services will be strictly regulated in a major shakeup of the payment service from June 10. BNPL services, such as Zip, StepPay and Afterpay, allow consumers to buy goods or services with credit and then repay the loan over interest-free instalments. Customers will be subject to a credit check and questions about outstanding debts to prevent them from taking on repayments they cannot afford. READ MORE: 'Hardly slept all night': $70 million lotto winner plans to retire immediately Additionally, providers will require a credit licence from ASIC, be a member of the external dispute resolution scheme AFCA, give reasonable consideration to hardship requests and introduce caps on the maximum permitted default fees. ASIC commissioner Alan Kirkland said the reforms were an "important step". "We strongly encourage buy now pay later providers who do not already have the appropriate credit licence to apply for one as soon as possible," Mr Kirkland said. "Providers who do not have their credit licence application accepted for lodgement by ASIC by 10 June 2025 may be engaging in unlicensed conduct if they continue to operate." National Consumer Law Centre senior policy officer Rose Bruce-Smith said the changes set "a floor of consumer protection". "It is a lighter touch regime than the full credit act, which is enforced for home loans, credit cards, everything else that is regulated." Ms Bruce-Smith noted it had been ten years of Buy Now Pay Later services as a "fully unregulated credit product where customer outcomes were left to the private market", so any regulation was welcome. Buy Now Pay Later (BNPL) services will be strictly regulated in a major shakeup of the payment service from June 10. BNPL services, such as Zip, StepPay and Afterpay, allow consumers to buy goods or services with credit and then repay the loan over interest-free instalments. Customers will be subject to a credit check and questions about outstanding debts to prevent them from taking on repayments they cannot afford. READ MORE: 'Hardly slept all night': $70 million lotto winner plans to retire immediately Additionally, providers will require a credit licence from ASIC, be a member of the external dispute resolution scheme AFCA, give reasonable consideration to hardship requests and introduce caps on the maximum permitted default fees. ASIC commissioner Alan Kirkland said the reforms were an "important step". "We strongly encourage buy now pay later providers who do not already have the appropriate credit licence to apply for one as soon as possible," Mr Kirkland said. "Providers who do not have their credit licence application accepted for lodgement by ASIC by 10 June 2025 may be engaging in unlicensed conduct if they continue to operate." National Consumer Law Centre senior policy officer Rose Bruce-Smith said the changes set "a floor of consumer protection". "It is a lighter touch regime than the full credit act, which is enforced for home loans, credit cards, everything else that is regulated." Ms Bruce-Smith noted it had been ten years of Buy Now Pay Later services as a "fully unregulated credit product where customer outcomes were left to the private market", so any regulation was welcome. Buy Now Pay Later (BNPL) services will be strictly regulated in a major shakeup of the payment service from June 10. BNPL services, such as Zip, StepPay and Afterpay, allow consumers to buy goods or services with credit and then repay the loan over interest-free instalments. Customers will be subject to a credit check and questions about outstanding debts to prevent them from taking on repayments they cannot afford. READ MORE: 'Hardly slept all night': $70 million lotto winner plans to retire immediately Additionally, providers will require a credit licence from ASIC, be a member of the external dispute resolution scheme AFCA, give reasonable consideration to hardship requests and introduce caps on the maximum permitted default fees. ASIC commissioner Alan Kirkland said the reforms were an "important step". "We strongly encourage buy now pay later providers who do not already have the appropriate credit licence to apply for one as soon as possible," Mr Kirkland said. "Providers who do not have their credit licence application accepted for lodgement by ASIC by 10 June 2025 may be engaging in unlicensed conduct if they continue to operate." National Consumer Law Centre senior policy officer Rose Bruce-Smith said the changes set "a floor of consumer protection". "It is a lighter touch regime than the full credit act, which is enforced for home loans, credit cards, everything else that is regulated." Ms Bruce-Smith noted it had been ten years of Buy Now Pay Later services as a "fully unregulated credit product where customer outcomes were left to the private market", so any regulation was welcome.
Daily Mail
01-06-2025
- Business
- Daily Mail
Centrelink recipient wins massive $250,000 payout after his insurer refused to pay up when his $65,000 BMW was wrecked
A Centrelink recipient has been awarded $250,000 after his insurer refused to pay him out when his $65,000 BMW was damaged while parked on a street. Insurer IAG had rejected the man's claim after his BMW was written off following a collision, but the owner of the vehicle hit back and filed a case with the Australian Financial Complaints Authority (AFCA). IAG rejected the man's case on the basis the collision scenario was 'implausible', the Daily Telegraph reported. In the case filed with the AFCA, the man refuted every allegation made against him and won. The insurance giant said the man, who has not been identified, claimed the driver had 'motive' to make a false claim because he stood to benefit financially from the claim and Centrelink benefits appeared to be his main income. Hitting back at the insurer, the man said he earned up to $40,000 a month trading on the stock market and with cryptocurrencies. The man had purchased the BMW for $65,000 days before initially insuring the vehicle for $280,000 and subsequently lowering it to $250,000. AFCA's adjudicator revealed phone recordings showed the man hadn't known how much to insure the car for, with the insurer informing him the average value for his BMW was between $175,000 and $325,000. The collision took place seven months later after the man and his partner had left it parked on a street and taken an Uber to a restaurant. IAG said the man had 'opportunity' and questioned why he hadn't taken the car to the restaurant or found a secure car park for the vehicle. The man said that he and his partner had decided they would have a drink at the restaurant. He also explained that because the street had no parking restrictions he saw no reason why he should waste time driving his car home before the meal. Although the adjudicator accepted these explanations, the insurer continued to lodge further allegations. IAG said the man had not been frank as he failed to mention he was disqualified from driving, he had a previous claim and he didn't call the police after discovering his car was damaged. The insurer also said the damage to the BMW was 'malicious'. A report from the insurer's crash investigator said the collision likely occurred due to a reversing truck doing a three-point turn on an unsuitable stretch of road. 'The report does not provide any specific information as to why the roadway is not conducive to a three-point turn being conducted,' the adjudicator said. The unnamed adjudicator ruled in the complainant's favour and the man received $250,000 plus interest. 'I accept there are inconsistencies, but I am not persuaded these alone, even when considered together, satisfy the burden of proof to establish the complainant has acted fraudulently or failed to be truthful and frank, to the degree where it would allow the insurer to decline the claim,' the adjudicator said. An IAG spokesman said an investigation can be required for certain claims due to the cost and importance of identifying possible fraudulent claims. But the financial settlement was immediately awarded to the man in question as soon as AFCA stated the decision.
