$1.6 Billion Still Available in Remediation for Millions of Aussies
The Australian financial system’s failures have left 2.7 million consumers owed $1.6 billion in remediation. Issues include fees for no service, non-compliant advice, mis-selling junk insurance, and broken price discount promises.
Failures across the financial system have resulted in $1.6 billion owed to 2.7 million Australian consumers, according to the Australian Securities and Investments Commission (ASIC).
The most common issues flagged by ASIC are:
- fees for no service misconduct;
- non-compliant advice;
- mis-selling “junk insurance”; and
- failing to deliver on price discount promises.
The “onus” is on the financial services industry to return “the money they owe to wronged customers,” says ASIC deputy chair Karen Chester.
ASIC has been monitoring 36 remediation activities as of June 2022 across superannuation, advice, credit, banking, and insurance.
More than 3.4 million consumers have already been paid $3.25bn, however, there is still an estimated $1.6bn yet to be returned to millions of Australians.
“Going forward, while ASIC may need to intervene in some isolated cases, we cannot and should not oversee remediations in order for consumers to receive fair and timely outcomes,” Ms Chester said.
ASIC recently released a regulatory guide for financial firms to push them to remediate their customers “quickly and effectively”.
Getting Legal Help for Accessing Remediation
If you’d like guidance on how to receive remediation or escalate your complaint to AFCA, but are unsure where to start, please call FDLegal on 1300 433 533 or email enquiry@fdlegal.com.au. We are committed to ensuring our clients receive the best possible advice and guidance on their situation, especially in bank disputes and financial matters.
