AFCA: when the Australian Financial Complaints Authority is the right path

Your insurer rejected your claim. Your bank misapplied a fee you never agreed to. Your super fund charged you for insurance you didn't know you had. Your financial adviser put you in a product that lost you money. You've complained to the business and got nowhere. Now what? For many financial services disputes in Australia, the right next step usually isn't Fair Trading or a tribunal — it's AFCA: the Australian Financial Complaints Authority. But AFCA has a specific scope, and using it well means understanding exactly what it covers, what it doesn't, and when another path is likely to serve you better.

Quick answer

Whether AFCA is the right path for your dispute depends on a few key variables: whether the business is an AFCA member, whether your complaint falls within AFCA's jurisdiction (it covers banking and payments, credit and loans, insurance, superannuation, investments and financial advice — not general retail or most other consumer disputes), and whether what you're seeking is within AFCA's monetary limits. You will usually need to have complained to the firm first. If those conditions are met, AFCA offers a free, independent process for eligible complainants — individuals and, in many cases, small businesses — that can result in a determination that binds both you and the firm if you accept it (superannuation determinations work differently). If your dispute involves a general consumer product or service rather than a financial one, your state or territory consumer body or a tribunal or court with jurisdiction is usually the more appropriate path.

What the law actually says

AFCA is an external dispute resolution (EDR) scheme operating under a framework overseen by ASIC. Covered financial firms — including many banks, insurers, super fund trustees, credit providers and financial advisers — are generally required to maintain internal dispute resolution (IDR) procedures and AFCA membership where they fall within the relevant licensing and AFCA framework. That membership obligation is what gives AFCA its practical power: a member firm cannot simply opt out of the process. (APRA, which supervises the financial soundness of banks, insurers and super funds, deals with systemic issues rather than individual complaints.)

Here is a distinction that trips up a lot of people, and it matters for how you frame your complaint. Many consumers are familiar with section 18 of the ACL, the general prohibition on misleading and deceptive conduct — but misleading conduct in financial services is usually dealt with under financial-services legislation instead, most often the ASIC Act 2001's prohibition on misleading or deceptive conduct in relation to financial services, with related provisions covering false or misleading representations about financial products. In some contexts the Corporations Act 2001 carries equivalent prohibitions for conduct relating to financial products. The practical upshot: the concepts are similar, but the statute, the regulator and often the forum are different.

The same split applies to the ACL's consumer guarantees. Those guarantees are mainly for goods and non-financial services — the faulty appliance, the badly performed trade job. Financial products and services are generally handled under financial-services legislation and AFCA's rules instead — the ASIC Act, for example, implies a warranty that financial services supplied to consumers will be rendered with due care and skill. Citing a consumer guarantee at your insurer is unlikely to land; describing what the firm promised, what it did, and what its own code of practice requires will land far better.

When AFCA investigates a complaint, it can consider whether the firm acted in accordance with its legal obligations, its own terms and conditions, applicable industry codes (such as the Banking Code of Practice or the General Insurance Code of Practice), good industry practice, and what is fair in all the circumstances. For most complaints, a determination binds both you and the firm only if you accept it within 30 days of receiving it. You don't have to accept one you consider inadequate: if you don't, neither side is bound and you generally retain the right to go to court instead. Superannuation complaints follow their own rules within AFCA, including different timeframes and, importantly, determinations that normally take effect once made and bind both parties without you having to accept them (either party can appeal to the Federal Court on a question of law). If your complaint is about super, check AFCA's superannuation-specific guidance rather than assuming the general rules apply.

It is also worth confirming the firm is an AFCA member before you lodge, since AFCA's jurisdiction depends on membership.

When this applies (and when it doesn't)

AFCA's jurisdiction covers complaints about:

• Banking deposits and payments — bank accounts, direct debits, payment errors, and credit reporting.
• Credit, finance and loans — home loans, personal loans, credit cards, and financial hardship.
• Insurance — home and contents, car, travel, life, income protection, and other personal insurance products.
• Superannuation — fund administration, insurance inside super, advice given in connection with super, and trustee decisions.
• Investments and financial advice — managed funds, stockbroking, financial planning advice, and margin lending.
• Debt collection — where the conduct relates to an AFCA member or credit provider and falls within AFCA's rules.

AFCA does not cover:

• General retail purchases of goods or services that are not financial products. If your dispute is about a faulty television, a builder who didn't finish the job, or a gym membership you can't cancel, AFCA is not the right forum — your state or territory consumer body or a tribunal or court with jurisdiction is likely more appropriate. See our guide on choosing the right escalation path for more detail.
• Disputes where the firm is not an AFCA member (worth checking at afca.org.au).
• Complaints outside AFCA's monetary limits. AFCA publishes current limits on its website, including caps on the compensation it can award for different complaint types (superannuation complaints have no monetary limit), and these are updated periodically. Always check the current limits before lodging.
• Complaints already dealt with by a court, tribunal, or a predecessor scheme, and some complaints that are subject to legal proceedings.
• Certain excluded products and decisions — including some insurance products, and disputes about the level of a fee, premium or interest rate (as opposed to non-disclosure, misrepresentation or incorrect application of it in your case, or a breach of the firm's legal obligations).

AFCA also generally expects you to have complained directly to the firm first and given it a reasonable opportunity to respond. If you go straight to AFCA, it will usually refer the complaint back to the firm to try to resolve it first (urgent complaints and superannuation death-benefit complaints are exceptions) — and the firm's response timeframe depends on the complaint type, so check which one applies to you rather than assuming a single deadline.

What to do today

If you believe you have a financial services dispute that falls within AFCA's scope, here is the sequence that tends to work well:

1. Complain to the firm first. Write to the firm's internal complaints team — not just customer service — and be specific: describe what happened, what you expected, and what you want. Keep a copy of everything. Firms are required to acknowledge complaints promptly and to provide an IDR response within the applicable timeframe. Those timeframes vary by complaint type: commonly 30 days for standard complaints, 21 days for some credit, default-notice or financial-hardship matters, 45 days for many superannuation and traditional trustee complaints, and longer again for some superannuation death-benefit complaints. Confirm which applies to you on AFCA's or ASIC's current guidance.

2. Get the firm's final response in writing. If the firm rejects your complaint or offers less than you think is fair, ask for its final response in writing. This document matters: AFCA will want to see it, and it may start the two-year time limit that runs from a firm's final IDR response.

3. Check AFCA's eligibility criteria. Before lodging, confirm at afca.org.au that the firm is a member, that your complaint type is within scope, that you are an eligible complainant, and that your claim is within the current monetary limits.

4. Lodge your complaint with AFCA. The process is free for complainants and can be done online. AFCA will contact the firm, gather information from both sides, and generally try informal resolution — negotiation or conciliation — first. Depending on the complaint, AFCA may then issue a preliminary assessment and, if the matter still isn't resolved, a formal determination.

5. Keep your own records. Statements, policy documents, correspondence, call logs, and any written promises made by the firm are all potentially relevant. The more organised your evidence, the more efficiently AFCA can assess your case.

If you are unsure how to frame that first complaint to the firm — the internal complaint letter is often where disputes are won or lost — fairgo can help you draft a clear, well-structured complaint letter. Our letter tool is built around the ACL, so for a financial-services complaint treat the output as a starting structure and describe the firm's own obligations, promises and code commitments in your own words. Even in financial services disputes, a well-organised written complaint often produces a resolution before AFCA is needed.

What if the business refuses

If the firm rejects your complaint at the internal stage, or simply doesn't respond within the required timeframe, AFCA is your primary escalation path for in-scope disputes. The process is free, independent, and often faster and less formal than court — though complex complaints can still take time.

If AFCA issues a determination in your favour and you accept it within 30 days of receiving it, it binds both you and the firm, and the firm must comply. If you do not accept it — because you think it doesn't go far enough — neither side is bound, and you generally retain the option of pursuing the matter in court (superannuation determinations work differently). Before starting parallel proceedings, though, check the timing and AFCA's rules: court or tribunal proceedings about the same dispute can affect whether AFCA is able to consider it.

For disputes that fall outside AFCA's scope, or where AFCA's monetary limits are too low for your claim, other options include:

• Your state or territory consumer protection body. It may help, for example by contacting the business or conciliating, if your complaint meets its criteria. Most expect you to have tried to resolve the matter with the business first, and eligibility rules vary by state and dispute type (in the ACT, for example, statutory conciliation applies only where the remedy you seek is worth $5,000 or less). These bodies don't make binding orders in ordinary consumer disputes and can't make the business settle, and they are generally not the right forum for financial products — they are better suited to disputes about goods and services under the ACL. Contact details are at /agencies.
• A tribunal or court with jurisdiction. For disputes that fall under the ACL rather than the financial services framework, in NSW, Victoria, Queensland, the ACT and the NT a tribunal (NCAT, VCAT, QCAT, ACAT or NTCAT) hears many consumer claims within its limits and can make binding orders; in Western Australia, South Australia and Tasmania, ordinary consumer claims go to the Magistrates Court. Jurisdiction depends on each forum's enabling legislation, the type of claim and the amount, so confirm the forum and its current thresholds on the official site before filing. See our tribunal comparison guide for more detail.
• Court. For large financial services claims, or where AFCA's limits are insufficient, court action may be the only path to full recovery. This is a significant step and usually warrants legal advice.

One important distinction: the ACCC investigates systemic misconduct across industries and does not resolve individual disputes — and for financial services, ASIC is the relevant conduct regulator rather than the ACCC. Either way, if your issue is with a specific firm and a specific transaction, AFCA or a court is the appropriate forum for getting your own money back. If you're still working out whether the business has actually refused in a way that justifies escalating, our guide on what to do when a business refuses walks through the decision.

Common mistakes

A few patterns come up repeatedly in financial services disputes:

• Going to Fair Trading instead of AFCA. Fair Trading bodies handle general consumer disputes under the ACL. They are generally not the right forum for disputes about insurance claims, loan decisions, or financial advice. If your dispute is about a financial product, AFCA is usually the more appropriate external dispute resolution starting point — provided the firm is an AFCA member and the complaint falls within AFCA's rules.

• Skipping the internal complaint step. AFCA will usually expect you to have already complained to the firm and given it a chance to respond. Lodging with AFCA before completing this step can delay your complaint or see it referred back.

• Assuming a determination is automatically binding on everyone. For most complaints, an AFCA determination is binding only if you accept it within 30 days of receiving it, and then it binds both you and the firm. If you don't accept it, neither side is bound and you can generally still go to court — but you lose the benefit of the determination. Superannuation complaints work differently, so check the rules that apply to your complaint type before rejecting an outcome.

• Missing AFCA's time limits. As a general guide, you must complain to AFCA within two years of the firm's final IDR response or within six years of when you became aware (or should reasonably have become aware) of the loss, whichever comes first. AFCA may extend these limits in special circumstances, while some superannuation complaints have their own, stricter limits. The detail varies by complaint type and there are exceptions, so check the current rules at afca.org.au rather than assuming you still have time.

• Framing a financial complaint as an ACL matter. The ACL's consumer guarantees are rights against the supplier of goods or services, not financial products, and the ACL's misleading-conduct provision generally doesn't apply to financial services. A misleading statement by a financial adviser is more likely to engage the ASIC Act's prohibition on misleading or deceptive conduct — and in some cases the equivalent Corporations Act provisions — than the ACL. If you're unsure which framework applies, AFCA's website is a reasonable starting point.

• Waiting too long. Financial disputes can involve complex paper trails that become harder to reconstruct over time. Raise the complaint in writing as soon as you identify the problem, and keep dated records of every step.

Understanding where AFCA fits — and where it doesn't — is often the difference between a complaint that resolves efficiently and one that stalls in the wrong forum for months. For financial products and services, AFCA is usually the most direct, cost-effective path available to ordinary consumers. For everything else, the ACL and the state-based system are likely more relevant.

Related reading

• Fair Trading vs AFCA — which path is right for your dispute?
• Business refused your refund? Here's what to do next
• NCAT, VCAT, QCAT — which tribunal should you use?
• Class action or individual claim in Australia: which gives you a better outcome
• Which regulator or complaint body: ACCC, ASIC, AFCA or Fair Trading?

This article is general information about Australian Consumer Law, not legal advice. It also describes the financial-services dispute-resolution framework and complaint and escalation pathways (AFCA, ASIC, APRA, the ACCC, state and territory consumer bodies, tribunals and courts), whose scope, rules, timeframes, thresholds and monetary limits sit outside the ACL or can change. Confirm the current position with the relevant body before lodging. For advice on a specific financial-services dispute, consider an appropriate legal advice service, AFCA, or the relevant financial-services regulator. For general consumer disputes about goods and services, your state or territory consumer body is the right starting point — full list at /agencies.