In recent times, I have been contacted by a number of people who have unresolved issues with their bank. They enquire about taking legal action but, of course, this is a very expensive and time consuming option. Is there a better alternative?
If a bank does not resolve a dispute to your satisfaction, you can take your complaint to the Australian Financial Complaints Authority (AFCA). It provides a way of resolving disputes with banks without having to go to court and it is free for consumers. A decision of AFCA is binding on the banks which are required to participate in the process.
AFCA will initially try to resolve the complaint by informal negotiation with the bank or even a telephone conciliation conference. If that does not work then it will usually provide a preliminary assessment about the merits of the complaint to the parties and will give them up to 30 days to agree to settle based on that assessment.
If there is no agreement between the parties, AFCA will make a determination and the bank must comply with it, however, a consumer does not have to accept it and is free to pursue the matter in Court. If the consumer does accept the determination then the bank will act in accordance with it.
In any case, it might be helpful to seek legal advice first on your situation and, of course, if you wish, assistance can be provided with making your complaint to AFCA.
September 2023