
Price to pay: Lifting the lid on financial complaints
Last updated on September 4th, 2025
When Queenie received a call from Paypal about an unauthorised transaction, she took quick action, unlinking her bank card as advised. Before she knew it, more than $1600 had vanished from her account. Realising she had been scammed, Queenie immediately alerted Westpac, never thinking she would soon join the thousands of Australians making financial complaints.
The bank told her as the transaction was pending, nothing could be done. She had to wait until the funds cleared before recovery could begin. The next day she was told the same thing. The third time she rang Westpac, she was told the money had already gone through and was no longer recoverable.
Upset by the delays, conflicting advice and missed opportunity to stop the transaction, Queenie contacted Handle My Complaint to see if there was anything else that could be done. She is far from alone in her frustrations.
Three years of high complaints
In 2024-2025, the Australian Financial Complaints Authority (AFCA) received more than 100,000 complaints for the second year in a row. This includes complaints about banks and other financial institutions, insurance companies and superannuation funds.
While there was a 4 percent decrease in overall financial complaints to 100,745, this was down from a record 104,861 the previous year.
Chief ombudsman and CEO David Locke said AFCA had now experienced three years of high complaints, with 2022-2023 figures just shy of 100,000. “Firms have more work to do to ensure fair responses to complaints are delivered earlier, without people having to take the extra step of coming to us," he said.
Common financial complaints
Personal transaction accounts, motor vehicle insurance and credit cards were the most complained about financial products in 2024-2025, while service quality, misleading product or service information and delay in insurance claim handling were major issues.
Banking and finance complaints were down 9 percent, though they made up more than half the total with 54,581. Mr Locke attributed much of the fall to scam-related complaints, which dropped by almost half to 5977.
He cautioned about reading too much into the scam figures, however, noting that AFCA only sees a small proportion of scam complaints, such as PayID scams.
“Towards the end of the financial year, we saw an uptick in some scam types that cause great harm,” he said. “Behind every case is a consumer who has been traumatised and often suffered life-changing impacts.”
Superannuation complaints also fell by 16 percent to 6164, but complaints rose steeply for general insurance (up 17 percent) and investments and advice (up 18 percent). Life insurance complaints were up 5 percent on the previous year.
AFCA will release the full review later this year but data from previous reporting periods shows unauthorised transactions, fees, the quality of service, and the interpretation of product terms and conditions continue to dominate bank complaints.
Reasons for complaints
AFCA will release the full review later this year but data from previous reporting periods shows unauthorised transactions, fees, the quality of service, and the interpretation of product terms and conditions continue to dominate bank complaints.
While more detail about financial complaints made in the 2024-2025 financial year will be revealed in AFCA’s full report, Mr Locke said the increase in general insurance figures reflected a surge in complaints about add-on insurance. Also called junk insurance because it often affords no more protection that what you are entitled to under Australian Consumer Law when you buy goods such as a laptop or car, or a service such as an insurance policy or credit card.
The rise in investment and advice complaints came amid the collapse of several prominent financial companies, including United Global and First Guardian Master Fund, and a 124 percent jump in complaints about self-managed super funds accused of failing to act in their clients’ best interests.
The ombudsman also said complaints about comprehensive vehicle insurance were fuelled by shortages in parts and skilled labour. "Insurers must effectively communicate these challenges transparently and proactively, helping customers navigate the wait with clarity and confidence,” Mr Locke said.
Who protects your rights?
The Australian Securities & Investments Commission (ASIC) regulates the financial sector, including setting and enforcing standards for dispute resolution, and can take action against financial service providers for misleading or deceptive conduct or failing to meet regulatory requirements.
ASIC is also responsible for monitoring compliance with the ePayments Code, a voluntary code regulating electronic payments such as internet and mobile banking. Financial institutions that subscribe to the code must provide clear information on the terms and conditions of use, as well as a fair process for handling disputes, including those involving unauthorised and mistaken transactions.
It can be difficult, as Queenie discovered, to get your money back if you have been scammed but it is still worth asking the bank for a refund. Check the terms and conditions of your account and see what the bank’s obligations are under the Banking Code of Practice.
Developed by the Australian Banking Association and approved by ASIC, the updated code came into effect in February 2025. It provides consumers with a range of safeguards and protections, including with regard to dispute resolution.
Making a formal complaint
If you are getting unsatisfactory answers, or none at all, from your bank or financial institution, it is time to escalate the issue. If you are unsure how to complain about a bank, let us guide you through the process.
Handle My Complaint advocates for frustrated and fed-up consumers just like you. We will review all your information and lodge a complaint with AFCA on your behalf. Find out more about how we can help ease the burden.