Our preliminary data “snapshot” as at June 30 shows a 3% rise in complaints received over the 2021-22 financial year. The total compensation and refunds secured by consumers was 13% lower. Complaints were resolved in an average of 72 days, a decrease from 76 days the previous year, reflecting work within AFCA on complaint closures but also the continuing efforts by financial firms to resolve complaints in a timely manner.

The snapshot shows that nearly 70% of complaints were resolved by agreement between the firm and consumer. About half were resolved at the first stage of our process, when we refer a complaint back to a firm for further consideration – steady with the previous year.

Complaints resolved early (at registration and referral stage)

Product line	FY 2022	FY 2021
Banking and finance	58%	55%
Insurance	44%	46%
Investments and advice	33%	33%
Superannuation	33%	33%

Percentage resolved by agreement

Product line	FY 2022	FY 2021
Banking and finance	74%	74%
Insurance (general and life)	58%	63%
Investments and advice (investments only)	45%	49%
Superannuation	54%	62%

When a complaint comes to AFCA, the first stage in our process is to register it and refer it back to the financial firm for further consideration. AFCA welcomes early resolution at this stage, as long as the outcome is fair for both parties, because it’s efficient and cost-effective for firms and it takes away anxiety and uncertainty for complainants.

If early resolution at this first stage is not possible, we continue to work with the parties to try to help them reach agreement during processes such as mediation.

But if agreement can’t be reached we can make a decision that, if accepted by the complainant, is binding on the firm. About 7% of disputes progressed to a formal decision in 2021-22, steady with the previous year.

In a positive outcome, the number of licensed financial firms with a complaint lodged against them was 5% lower than in the previous 12 months.

Financial difficulty-related complaints fell 14%, from more than 5,000 the previous year, reflecting the work the banking sector has done to support consumers since the COVID pandemic. In the coming year, we’ll work with industry and consumer groups as we monitor the impact of cost-of-living pressures and higher interest rates on financial services consumers.

Sometimes we identify through our work on individual complaints that there may be a wider, systemic issue. We collaborate with firms to help them address issues we identify, but there are occasions when we need to report a systemic issue to the relevant regulator. You can read more about our systemic issues work here.

Top five products most commonly complained about

Product	FY 2022	FY 2021
Credit cards	9,153	9,903
Personal transactions	7,416	5,758
Home loans	6,439	6,400
Home building insurance*	6,120	3,527
Motor vehicle - comprehensive	5,791	4,386

* New entry to top 5

Credit cards were the most complained about product in 2021-22, accounting for 13% of all complaints. But, despite topping the list for another year, complaints about credit cards were actually down 8% on the previous year.

However, complaints related to personal transaction accounts were up nearly 30%. Unauthorised transactions were the most significant issue in connection with transaction accounts, rising 45% to account for more than 2400 complaints for this product. Scams also contributed.

Natural disasters pushed home building insurance into the top 5 and drove a rise of about 30% in complaints regarding motor vehicle insurance.

Complaints received by product line

Product line	FY 2022	FY 2021
Credit	37%	40%
General insurance	26%	23%
Deposit taking	15%	12%
Superannuation	7%	7%
Payment systems	7%	7%
Investments	5%	5%
Life insurance	3%	2%
Other	0%	0%

Complaints received by top five financial firm types

Top 5 financial firm types	FY 2022	FY 2021
Bank	28,339	26,281
General insurer	15,487	13,896
Credit provider	7,811	8,216
Superannuation fund trustee / advisor	3,765	3,643
Life insurer	1,962	2,115

Among the largest financial firms, the top 4 banks together accounted for nearly 20,000 complaints, a rise of nearly 10%, while the top 4 insurers together accounted for about 9,400 complaints, up 19%.

Complaints received by main product issues

Issue	FY 2022	FY 2021
Default Listing	3,397	3,738
Service quality	3,039	2,554
Financial firm failure to respond to request for assistance	2,713	2,678
Incorrect fees/costs	1,892	1,894
Repayment history information*	1,879	1,323

* New entry to top 5

Issue	FY 2022	FY 2021
Unauthorised transactions	3,430	2,375
Service quality	2,002	1,221
Interpretation of product terms and conditions	1,125	715
Mistaken internet payment	621	595
Failure to follow instructions/agreement*	489	335

* New entry to top 5

Issue	FY 2022	FY 2021
Unauthorised transactions	1,105	1,004
Service quality	639	603
Mistaken internet payment	573	417
Chargebacks - declined (consumer)*	330	117
Denial of claim	307	636

* New entry to top 5

Issue	FY 2022	FY 2021
Delay in claim handling	4,804	3,126
Claim amount	3,747	3,161
Denial of claim-exclusion/condition	3,111	3,146
Denial of claim	2,125	2,479
Service quality	1,503	1,164

Issue	FY 2022	FY 2021
Service quality	774	517
Delay in claim handling	737	856
Account administration error	506	487
Denial of claim	438	517
Claim amount*	342	362

* New entry to top 5

Issue	FY 2022	FY 2021
Interpretation of product terms and conditions*	654	100
Service quality	570	674
Failure to follow instructions/agreement	332	229
Failure to act in client's best interests	281	525
Inappropriate advice	241	534

* New entry to top 5

Issue	FY 2022	FY 2021
Misleading product/service information	437	109
Incorrect premiums	286	213
Interpretation of product terms and conditions*	234	45
Failure to act in client's best interests*	229	66
Service quality	205	141

* New entry to top 5

Complaints received by state

State	FY 2022	FY 2021
ACT	1,166	1,103
NSW	23,220	22,978
NT	476	462
Queensland	14,094	13,181
South Australia	4,364	3,814
Tasmania	920	894
Victoria	20,988	20,232
Western Australia	6,216	6,122