CHOICE responds to new data from AFCA showing a record 34% increase in customer complaints about financial services in the past year.
CHOICE CEO Alan Kirkland:
“The record increase in financial complaints shows financial institutions aren’t doing enough to help consumers facing cost of living pressures and a surge in scams. We urgently need strong rules that protect people from scams and poorly regulated loans.”
“Consumers made a record 96,987 complaints to AFCA in the past year, with complaints about transaction accounts overtaking credit cards for the first time, partly due to the rise in people losing money through scams.”
Thank you Choice to put this out to the Community. The financial Services, including the four big ones had it too good for too long. It sure is time to tighten up the srews again as we did after the financial advisor scandals in the 1990’s. If the Banks, Super Funds, Financial Advisors, Insurance Companies etc get away with a slap on the hand for any misconduct, their shonky practices will continue. Unfortunately it is impossible to stop every black sheep trying to cheat money from the vulnerable but regulations should be there to protect every citizen.
I agree that not all financial services companies aim to increase their net profit and shareholder return only.
Having recently applied to Afca myself about a bank’s unilateral actions regarding my bank account, it seems that a major issue was ignored in the article about the number of complaints received. That is, that Afca cannot issue penalties for poor behaviour.
In my case I sought interest as my funds were unavailable when they should have been and I sought a penalty. Afca made clear that issuing penalties is not listed on their menu of options.
I wonder who wrote the menu?
No wonder the bank seemed unmoved, almost welcoming, when months ago I informed bank staff that I’m taking the matter to Afca.
If the worse that can happen to a financial institution is to be told to make good any losses suffered by customers, then of course this will encourage bad behaviour.
Imagine a cat burger caught stealing your brand spanking new iPhone. Caught on cctv. Multiple witnesses. When the best redress from a customer’s perspective is for the iPhone to be returned in the condition it was taken, but no gaol time, no fine or sanction imposed, we shouldn’t be surprised if thefts continue.
