A One-Stop Gift for Consumers on Valentines Day

As at Valentines Day, 14 February 2018, legislation has passed through both houses of parliament and to establish the Australian Financial Complaints Authority (AFCA).

The intention for AFCA is to provide a one-stop shop for the resolution of disputes with banks, super funds and small amount credit providers.

The Authority will start receiving disputes no later than 1 November 2018. The scheme is intended to be operated by a not-for-profit company and is seeking proposals for this by 15 March 2018. It might be a great opportunity for a local Townsville organisation to participate in this national endeavour to improve the efficiency of dispute resolutions for consumers.

The types of disputes AFCA is empowered to deal with include:

• Small business matters – i.e., businesses with less than 100 employees.
• Small business primary production producers relating to disputes about credit facilities of up to $5m, with a maximum compensation of $2m available.
• Income insurance policy disputes. Currently there is a cap on these types of disputes of $8,300.00 per month but this will increase to $13,400.00 per month.
• Uninsured third party motor vehicle claims disputes. The cap on these disputes will increase from $5,000.00 to $15,000.00.
• General insurance broker disputes. The cap on these disputes will increase from $174,000.00 to $250,000.00.

Further information about AFCA can be obtained from the AFCA Transition Team at afca@treasury.gov.au.

For more complex disputes, our Townsville lawyers within our Commercial Solutions department will be able to assist with advising you on what other options might be available.