When a complaint with a bank, insurer, super fund or other financial firm remains unresolved, the Australian Financial Complaints Authority may provide a free external dispute resolution pathway. AFCA is independent of the financial firm and handles complaints from consumers and eligible small businesses within its rules.
It is not a court and cannot investigate every disagreement involving money. Its jurisdiction depends on the firm, product, issue, time limits and exclusions in the AFCA Rules. Understanding those boundaries helps a complainant prepare the right material and avoid confusing AFCA with ASIC or another regulator.
Complaints AFCA may consider
AFCA generally deals with complaints about member financial firms across credit and loans, banking deposits and payments, general insurance, superannuation, investments and financial advice. Common issues include disputed transactions, lending hardship, denied insurance claims, advice concerns and some superannuation decisions.
The financial firm normally needs to be an AFCA member and the complaint must fall within the scheme’s scope. The public member search can help confirm the firm. Limits can apply to claim amounts, remedies, dates and types of complaint, and the detailed rules should be checked for the current position.
Some matters cannot be considered, including circumstances where a court has already made a decision or a mandatory exclusion applies. A complaint outside AFCA’s jurisdiction may belong with a court, tribunal, regulator, ombudsman or specialist service instead.
Start with the financial firm
The usual first step is to complain directly through the firm’s internal dispute resolution process. State what happened, why the outcome is disputed and what resolution is sought. Include account or policy references, a concise timeline and copies of relevant documents rather than a large unsorted file.
The firm has an opportunity to investigate and respond under applicable complaint-handling requirements. If the matter is not resolved or the response is unsatisfactory, the complainant can approach AFCA. An urgent hardship or recovery situation can be identified clearly when lodging.
AFCA reviews whether it can accept the complaint, shares information with the firm and works towards a resolution. Matters can resolve by agreement, while others proceed through a more detailed assessment and a decision process under the Rules.
Prepare a complaint that can be followed
A strong complaint is chronological and specific. Identify the product, key dates, amounts, conversations and the effect of the conduct. Explain the desired outcome, such as correcting an account, reconsidering a claim or compensating a documented loss. Avoid overstating facts that the records do not support.
Useful documents may include contracts, statements, claim decisions, emails, call notes, photographs and the firm’s final response. Keep originals and provide clear copies. If another person will act for the complainant, AFCA may require an authority.
Time limits are important. Waiting can affect jurisdiction and evidence, so a person who is unsure can check AFCA’s current guidance promptly. Lodging with a regulator does not necessarily pause a limitation period or create an AFCA complaint.
ASIC supervises conduct and receives reports that can inform regulatory action, but it generally does not negotiate individual outcomes. AFCA’s role is dispute resolution within its scheme. The two bodies can both be relevant to the same conduct for different reasons.
Remedies depend on AFCA’s powers, the type of complaint and the evidence. A complainant can propose a practical outcome, but AFCA is not required to adopt either party’s preferred position. It considers fairness in the circumstances having regard to legal principles, industry codes, good practice and previous decisions as permitted by its framework. Published determinations can illustrate reasoning, although every dispute turns on its own facts.
Small-business eligibility has its own definitions and limits. A company being locally owned or described as small in ordinary conversation does not automatically establish access. The current Rules determine whether the complainant and credit facility fall within jurisdiction. Checking this early can avoid preparing a lengthy complaint for the wrong forum.
While a complaint is active, keep meeting obligations that are not genuinely disputed where possible and preserve all communications. Do not assume lodging automatically stops every court deadline, enforcement step or statutory time limit. Where proceedings or urgent asset recovery are involved, legal advice may be needed alongside the AFCA process.
This article provides general information only and is not personal legal or financial advice. AFCA’s Rules and Operational Guidelines govern its jurisdiction, and current official information should be used for a specific complaint.