AFCA’s latest figures have shown consumer disputes climbing to new peaks, with banking and finance driving another year of six‑figure complaint volumes.
Australians lodged 119,949 complaints with the Australian Financial Complaints Authority (AFCA) in 2025–26, marking the highest tally since the scheme began and the third year running that disputes have topped 100,000.
The external dispute resolution body – which handles complaints about banks, insurers, super funds, and advice firms – said the numbers underlined how cost‑of‑living pressures and recent investment collapses were translating into more friction across the financial system.
AFCA’s preliminary data to 30 June revealed that banking and finance remained its largest complaint area, accounting for 66,971 cases, up 23 per cent on the previous year.
Within that category, financial difficulty complaints climbed 17 per cent, while credit reporting complaints rose 22 per cent, with AFCA noting a “steep rise” in recent months as more Australians struggle with arrears and default listings.
General insurance was the second‑largest source of disputes, with 36,022 complaints, up 5 per cent year on year.
Superannuation disputes surged 42 per cent to 8,755 complaints, driven in part by fallout from high‑profile fund failures.
Investments and advice complaints, though smaller in absolute terms at 6,542 cases, recorded the fastest growth at 56 per cent, while life insurance complaints edged up 3 per cent to 1,561.
Across products, AFCA said the three most complained‑about items in 2025–26 were personal transaction accounts, motor vehicle insurance, and credit cards.
The most common underlying issues were delays in claim handling, concerns about service quality, and claim rejections.
AFCA says complaints reflect cost‑of‑living strain – and fixable problems
AFCA chief customer officer Deborah Jenkins said three consecutive years above 100,000 complaints underscored how much pressure households are under.
“These numbers highlight the impact that ongoing cost-of-living challenges and economic uncertainty are having on consumers, and the flow-on effects these conditions can have across the financial system,” Jenkins said.
“Every complaint represents someone’s experience, and collectively they provide a view of where consumers are struggling. By working with us and acting on these insights, firms can help prevent recurring issues that lead to complaints with AFCA.”
Yet she added that the trends pointed to specific operational gaps that could be addressed.
“These numbers point to opportunities for firms to strengthen hardship support, improve communication with customers and ensure accurate credit reporting, helping resolve issues before they become disputes,” Jenkins said.
Scams rebound, but early resolution holds
After falling in the previous year, scam‑related complaints rose 12 per cent to 6,706, reflecting what AFCA described as the continuing and evolving threat scams pose to consumers.
Jenkins warned that prevention would be critical as scammers become more sophisticated.
“Scammers are becoming more sophisticated in how they target consumers. Resolving disputes is important but preventing scams before they happen is even better. That’s why broader scam prevention efforts are so important,” she said.
Despite the high volumes, AFCA’s data showed early resolution remained a significant feature of the system, with about 43 per cent of complaints finalised before reaching the ombudsman’s formal decision process.
Since commencing operations in 2018, AFCA has handled roughly 690,000 complaints, helping secure around $2.6 billion in compensation or refunds for consumers and small businesses.
[Related: AFCA report puts broker processes under spotlight: MFAA]
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