Why financial complaints have reached a record high

Australians lodged a record 119,949 complaints against banks, insurers and financial firms in 2025-26, with transaction accounts, credit cards and car insurance among the biggest sources of frustration.

New figures from the Australian Financial Complaints Authority (AFCA) show complaints jumped 19% from 100,745 a year earlier, marking the third consecutive financial year the ombudsman has received more than 100,000 complaints.

The figures suggest cost-of-living pressures, claim disputes and financial hardship issues are continuing to drive consumer frustration with financial firms.

"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," says Deborah Jenkins, AFCA's chief customer officer.

"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."

Transaction accounts and everyday bank accounts generated the largest number of complaints nationally, underscoring how problems with everyday banking products are becoming a growing source of consumer frustration.

The ombudsman notes that the figures released today are preliminary though, with the finalised data set to be published in its annual review later in the year.

Australia's most complained-about financial products 

While AFCA recorded an increase in complaint numbers across all the categories it tracks, banking and finance proved to be the most troublesome area.

Australians lodged 66,971 complaints in the category over the last financial year - a 23% uptick on the year before.

Jenkins says that financial difficulty was one of the leading drivers of this growth, and one of the areas that banks and lenders need to improve on.

"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."

Transaction accounts topped the list of complained-about financial products, followed by motor vehicle insurance and credit cards, highlighting just how many disputes stem from everyday financial products rather than complex investments.

General insurance was the second-largest category by complaints volume, with motor vehicle insurance once again proving to be the largest source of frustration among customers.

Insurance-related issues also topped AFCA's overall complaints list, with claim handling delays and claim rejections among the top three issues, along with service quality concerns.

Shield and First Guardian trigger complaints surge

Banking and finance may have generated the most complaints, but the sharpest growth came from investments and financial advice.

Complaints in the sector surged 56% over the year, fuelled by the fallout from the collapse of the Shield Master Fund and First Guardian Master Fund investment schemes.

It's estimated that more than 11,000 Shield and First Guardian investors were impacted when the schemes collapsed, with $1.1 billion in retirement savings put in jeopardy.

"While most financial advice firms do the right thing, we are seeing a significant number of complaints stem from major financial collapses that have affected thousands of consumers," Jenkins says.

"These matters are complex and can be incredibly stressful for individuals and their families."

AFCA has a dedicated page for investors caught up in the collapses, including information on the options available and the types of complaints it will and won't be able to assess.

How to lodge a complaint with AFCA

In most situations, the advice for consumers having an issue with a financial firm is to reach out to the relevant customer service department to try and solve it directly.

If that initial contact doesn't prove fruitful, it may then be worth asking to escalate the issue with someone more senior.

Should that fail though, consumers may want to consider lodging a formal complaint.

For issues related to banking, insurance, superannuation, investments and financial advice, AFCA is the relevant body to contact for both individuals and small businesses.

Complaints can be made online, over the phone, via email or in writing. Though before getting started, AFCA suggests pulling together any relevant documents and having a think about the kind of outcome you're hoping for.

For issues in different sectors, like goods and services or energy, consumers may need to reach out to their state or territory fair trading agency or relevant ombudsman.

Need help resolving a dispute? Check out our guide on where to complain about banks, insurers, telcos and retailers for a comprehensive rundown of your options.

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