What is an AFCA complaint? How do I make one?   

The Australian Financial Complaints Authority is a dispute resolution provider which assists consumers and financial firms resolve disputes. AFCA works with both sides to resolve complaints in a fast and efficient manner. AFCA is a free service who can be contacted via the following methods: online www.afca.org.au  email info@afca.org.au
​or phone 1800 931 678 (free call)​
​

How can SR Group assist you to make an AFCA complaint?

​For many people, disputes with a financial services provider (FSP) can be a very daunting process to navigate. You may have tried to resolve the issue with the FSP and had no success, and sometimes not even a response. This is where we can assist you in taking the complaint to the Australian Financial Complaints Authority (AFCA).
We understand the dispute resolution process from when you first submit the complaint all the way through to finalisation. Our experience in negotiation and case management takes the pressure off you and allows us both to focus on what we’re good at.  We will assist you through this process and help you obtain the best possible outcome from your dispute. 
  • The Australian Financial Complaints Authority (AFCA) is a non-government dispute resolution organisation providing free, fair and independent help with disputes between consumers and financial providers.
  • It is compulsory for all Australian Financial Services Licence and Australian Credit Licence holders to be members of AFCA. 
  • AFCA can consider complaints within six years of you first became aware of the loss. 

​Submitting a complaint 

Before you start you will need to
  1. Identify the situation/issue and what has taken place.  
  2. Consider what type of loss you have experienced due to this situation and the outcome you want to achieve.
  3. Put together any important documents to support your case. 
  4. Be ready to prepare a statement of financial position if you are in financial distress. 
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What to expect during the resolution process 

Your complaint will be assessed as a fast track, standard, complex and/or financial distress issue. Depending on the assessment outcome it will then proceed to case management. Further documentation maybe required and a resolution process set in place. Finally a decision will be determined by an adjudicator, ombudsman or panel review depending on complexity.

How long will it take for a determination?

Most complaints are resolved in approximately four months, however some cases may take up to six months for a resolution. Once your complaint is submitted, a timeframe will be established based on the complexity of the complaint.

Complaints AFCA can consider

  • credit products  (credit cards, interest-free contract, store or gift cards)
  • finance facilities  (payday loans , short-term loans, business finance) 
  • loans (home, personal, investment and business loans) 
  • banking deposits and payments  (online transactions, ATMs plus incorrect or mistaken payments) 
  • insurance policies ( home and contents, travel, vehicle, business, professional  and life insurance)
  • superannuation (product and funds)
  • investments (derivatives - CFDs and options, securities, managed and property investment schemes )
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​Poor financial advice includes:
  • Advice which was not suitable or specific to your personal circumstances. 
  • Where you were not told about a fee, charge, premium, or rebate; or where one of these things was misrepresented it to you; or if a mistake was made when they calculated it.
  • Misleading information about a product or service you obtained from them
  • ​Failure to provide assistance in relation to any financial difficulty that you are experiencing. 
  • Failure to disclose commissions the advisor was receiving for recommending a specific product.

Some successful AFCA outcomes we have achieved 

Irresponsible Lending Issue

Our client was recommended a strategy by her financial advisor to refinance her home and obtain additional funds to invest for the future. The financial firm issued our client with new loans comprising a home loan and multiple investment loans. Our client alleged that the loan repayments were beyond her means and that the financial firm did not fulfil its obligations when assessing the borrower’s ability to service the loans. 
Actions Taken to Assist & Result Achieved
We investigated the loans' serviceability and found our client had not been able to service the loans on her income capacity. We compiled a detailed submission to AFCA in regard to these claims. AFCA reviewed the submission and decided the financial firm were required to pay compensation for the interest accumulated on the home loan since 2008—resulting in a fair and successful outcome for our client. 
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Insurance Policy Issue - Natural Disaster 

Our client came to us after losing her home and personal belongings in a fire. She held a building and contents insurance policy that was paid up to date at the time of the fire. Our client claimed fire damage to the property. The claim was referred to the insurer's investigation department for assessment. After the evaluation of the property, the insurer decided our client had not disclosed the condition of the property when taking out her policy. 
The insurer declined the claim based on our client's nondisclosure. The insurer also cancelled the policy stating if our client had disclosed the relevant information would not be a risk.
Actions Taken to Assist & Result Achieved
Our team firstly evaluated the case and found the insurer did not provide a detailed and thorough process when our client applied for insurance initially. We put forth a comprehensive submission to AFCA. We argued the unsubstantiated refusal of the claim and our clients' loss. The insurer was directed to settle our client's claim for the contents and the house to be rebuilt. The insurer's cancellation of the policy based on nondisclosure was deemed incorrect and the policy reinstated. See the determination 
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Investment Issue 
​Our client was a user of a trading platform that allows for Contract for Difference (CFD) trading. He had many short positions in the Dow Jones Industrial Average (DJI) as he believed the US market would fall following the election of Donald Trump in 2016. On 6 February 2018 the DJI fell heavily and our client seeked to benefit from closing many of his short positions. However, the CFD provider’s app and webpage did not allow for him to close these positions. Eventually, after about seven minutes the app worked and he closed his short positions, but at a higher price. The CFD provider argued that he should have called the trading desk since the app and webpage were not operating properly.
 Actions Taken to Assist & Result Achieved
We wrote many submissions to AFCA, arguing that the CFD provider was at fault for not allowing our client to close his positions online. The CFD provider was ordered to pay compensation of $22,086 for not providing the best service it could. ​ See the determination
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Financial Advice Issue
​Sixteen of our clients applied to invest $199,000 for a unit in an unregistered managed investment scheme in Western Australia. However, because the total number of scheme members exceeded 20 it should have been registered and a Product Disclosure Statement (PDS) issued as well. Investors were never provided with their units in the property scheme, which we allege is a Ponzi scheme.
 
 Actions Taken to Assist & Result Achieved
As our claims against the Australian Financial Services (AFS) Licence holder were successful, compensation was ultimately awarded for three clients through the Compensation Scheme of Last Resort. However, the AFS Licence holder declared insolvency meaning the AFCA predecessor scheme, the Financial Ombudsman Service (FOS) could no longer consider the remaining complaints. We are currently lobbying to achieve compensation for the remaining clients. See the determination
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