We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Surprisingly, despite the challenging global and domestic economic conditions, AFCA's Lead Ombudsman for Small Business, Suanne Russell, revealed that financial difficulty complaints had actually fallen by 1% to 475 complaints in 2022-23. Considering the rise in personal and corporate insolvencies, this unexpected decrease is an area that AFCA is diligently monitoring.
It is noteworthy to highlight the resilience demonstrated by small businesses post-COVID and in the current economic environment. Despite facing increased costs and higher interest rates, small businesses have remained steadfast and adaptable.
Business loans continued to be the most commonly complained about financial product, accounting for approximately one-third of small business complaints received by AFCA. However, there was a notable decrease of 7% in loan-related complaints compared to the previous year. Other top products that drew complaints included business transaction accounts, commercial property, credit cards, and commercial vehicles.
Service quality emerged as the predominant issue in small business complaints, although there was a 21% decrease in such complaints. The list of top complaints was further complemented by concerns regarding unauthorized transactions (including scam activity), financial firms failing to respond to assistance requests, denial of insurance claims based on exclusions or conditions, and insurance claim amounts.
AFCA is an independent organization that provides free and impartial financial complaints resolution services for both small businesses and consumers. In the 2022-23 period, AFCA received a record-breaking 96,987 complaints, representing an unprecedented rise of 34%. While small business complaints accounted for 4% of the total complaints, the remainder predominantly originated from individual consumers.
It is worth mentioning that not all small business lenders are required to be members of AFCA. Membership is mandatory for Australian Financial Services and Australian Credit License holders, as well as a condition of codes of practice such as the Online Small Business Lenders Code. However, lenders focusing solely on small businesses are not obligated to possess an AFSL or ACL, and hence, do not need to be part of the AFCA Scheme.
Within 60 days of being lodged with AFCA, around 48% of small businesses' complaints were resolved successfully.
Having recently celebrated its fifth anniversary, AFCA has played a pivotal role in securing $106 million in compensation and refunds for small business complainants, following the registration of over 20,000 complaints.
Published:Friday, 24th Nov 2023
Source: Paige Estritori
| NAB Offers a Glimmer of Hope with Fresh Interest Rate Cut 23 Jul 2024: Paige Estritori Australian home seekers facing stiff challenges may find a bit of relief from an unexpected source: NAB, one of the country's financial giants. The bank has recently slashed its three-year fixed home loan interest rate by a notable 0.6%, bringing it down to 5.99%. - read more |
| Australian Markets React to Employment Data: Shares Narrowly Lower 20 Jul 2024: Paige Estritori The Australian sharemarket experienced a modest pullback on Thursday, ending a day of fluctuations just shy of its recent peak. A day following the celebration of a fresh 52-week high, the market's mood shifted. - read more |
| ANZ Prepares to Finalize $4.9B Suncorp Acquisition 18 Jul 2024: Paige Estritori ANZ is poised to officially acquire Suncorp's banking sector on August 1, following recent modifications to Queensland's legislative framework essential for the $4.9 billion transaction. - read more |
| Loan-Ready Budgeting: Prepare Your Finances for a Smooth Application Stepping into the realm of loans and finance can be a daunting endeavor, but it all begins with a solid foundation in personal budgeting. Understanding how to manage your money effectively is not just a skill—it’s a crucial aspect of securing financial stability and achieving peace of mind. By tuning in to your finances and preparing a thought-out plan, you’re setting the stage for a well-informed loan application process. - read more
|
| Personal Loan Pitfalls: How to Avoid Common Mistakes in Loan Comparisons When considering personal finance in Australia, personal loans are a handy resource for achieving various financial goals, from consolidating debt to funding a major purchase. Yet, it's essential to approach this financial tool with caution and understanding. Proper comparison of personal loans can be the difference between a financial stepping stone and a stumbling block. - read more
|
| Proven Strategies to Boost Your Personal Loan Approval Odds Embarking on the journey to secure a personal loan can often seem like navigating through a complex financial landscape. Particularly for Australians, where the market is bustling with a multitude of lenders each with their respective criteria and rates, increasing the chances of loan approval is a pursuit that requires insight and preparation. - read more
|
|
Your Financial Comeback: Rebuilding Credit Scores for Future Opportunities In the dynamic landscape of Australian finance, the emphasis on a robust credit score cannot be overstated. A favourable credit score serves as a gatekeeper to a world of financial opportunities, determining the ease with which individuals can access loans, the interest rates they will be eligible for, and even the prospects of securing a home in an ever-competitive market. As the average mortgage sizes surge to unparalleled heights, the significance of maintaining an advantageous credit profile escalates in tandem. - read more
|
|
|
Personal Loan Pitfalls: How to Avoid Common Mistakes in Loan Comparisons When considering personal finance in Australia, personal loans are a handy resource for achieving various financial goals, from consolidating debt to funding a major purchase. Yet, it's essential to approach this financial tool with caution and understanding. Proper comparison of personal loans can be the difference between a financial stepping stone and a stumbling block. - read more
|
|
A Credit-Savvy Approach to Loan Comparison: What Every Australian Borrower Needs to Know Welcome to your essential guide on how to navigate the complex world of personal loans in Australia. Whether you're seeking to finance a major purchase, consolidate debt, or cover unexpected costs, understanding the nuts and bolts of personal loans is crucial. In this conversation, we'll shed light on why being credit-savvy is not just smart, but necessary for anyone considering a loan. - read more
|