Record AFCA Complaints: What Borrowers Should Know Now

Banking and finance complaints hit 66,971 — up 23% — in 2025-26. The broking sector's strong standards offer a guide for what to look for.

The Australian Financial Complaints Authority received a record 119,949 complaints in the 2025-26 financial year — the highest total on record, and the third consecutive year that complaints across the financial system have exceeded 100,000. For borrowers choosing a lender or a broker in today's market, that trend carries a practical message: the quality of advice and service at the start of a lending relationship has a direct bearing on the outcome.

Australian Broker reports that banking and finance remained the largest complaint category, with 66,971 disputes lodged in 2025-26, up 23% on the previous year. Investments and advice saw the steepest proportional rise, climbing 56% to 6,542 complaints, largely tied to the collapses of the Shield Master Fund and First Guardian. Superannuation complaints rose 42%.

That is a broad and accelerating deterioration across much of the financial services sector. But within that picture, one segment has held its standards.

Brokers Standing Apart From the Trend

Finance Brokers Association of Australia (FBAA) chief executive Leo Gagic said the broking profession had continued to demonstrate strong performance even as complaint volumes climbed sharply across the wider financial system.

"While complaint volumes continue to increase across banking, insurance, superannuation, and investments, the majority of finance brokers continue to demonstrate the high standards of professionalism, care and transparency that clients expect," Gagic said.

He pointed to AFCA's own analysis, which found that many complaints stem from communication, service quality, and process-related issues — not from the financial outcome itself. In other words, it is frequently not the product rate or the loan structure that triggers a dispute, but how the client was treated, what they were told, and how clearly they understood what they were agreeing to before they signed.

"Adequate due diligence, robust compliance practices, and clear communication are not just regulatory obligations — they are the foundation of trust," Gagic said. "When clients feel informed, understood, and supported throughout the lending journey, the likelihood of disputes falls significantly. The result is stronger client relationships, greater transparency, and better outcomes for everyone involved."

Gagic acknowledged the broader pressure across financial services, adding: "Congratulations to our community — the many brokers who continue to raise the bar for professionalism and client advocacy every day."

What the Data Means for Borrowers

The AFCA complaint volumes are a macro signal, but the practical implication for individual borrowers is more personal. The quality of your first meaningful interaction with a broker or lender significantly shapes how the rest of the relationship unfolds — and determines whether it ends in a successful settlement or an escalated dispute.

When a broker takes the time to genuinely understand your financial position — your income, your expenses, your short-term capacity and long-term goals — before recommending a product, the risk of mismatch between what you expect and what you receive is substantially lower. That upfront due diligence is not just a professional standard; it's what protects you if things go wrong later.

The complaint type data reinforces this. Process and communication failures, rather than rate or product failures, dominate the complaints that reach AFCA. Borrowers who feel rushed through an application, who don't receive clear explanations of fees and comparison rates, or who don't fully understand what they are committing to are the ones most likely to end up in dispute.

For borrowers who have already settled a loan and feel something was not properly explained or disclosed, AFCA provides a free and independent dispute resolution service available to all Australian consumers.

How to Protect Yourself Before You Sign

Whether you are refinancing an existing home loan, buying for the first time, or exploring investment lending, a few basic steps can significantly reduce your exposure to the problems driving the AFCA complaint record.

Ask your broker to walk through the comparison rate, not just the headline rate. The comparison rate includes fees and charges that can make two products with identical advertised rates perform very differently over the life of a loan. Use our repayment calculator to independently check the numbers before you submit an application.

Request your Credit Assistance Guide and Credit Proposal Disclosure document before committing to a formal application. These documents explain the product being recommended, the basis for the recommendation, and what the broker receives from the transaction. Reviewing them gives you a clear record of what was advised and why.

Finally, compare what you've been offered against the current market. Our home loan comparison can give you a clear sense of where your rate sits relative to what competitive lenders are offering right now. A broker who has genuinely worked in your interest will welcome that comparison — it's one of the clearest ways good advice is demonstrated, not undermined.

Record complaint volumes across the financial system are not a reason to distrust professional advice. They are a reason to seek the kind of advice that earns trust from the very first conversation.

Australian Broker reports on the full 2025-26 AFCA data, including the FBAA's response and a breakdown of complaint trends across banking, investments, insurance, and superannuation.