Centralised Dispute Resolution for Scam Complaints
The Australian Financial Complaints Authority (AFCA) has been chosen by the Federal Government as the centralised External Dispute Resolution (EDR) service for scam complaints under the Scams Prevention Framework (SPF). This framework will expand AFCA’s jurisdiction to include roles of banks, telecommunications companies, and digital platforms in scam-related complaints. Consumers unable to resolve issues through Internal Dispute Resolution will find AFCA as their one-stop-shop from 31st March 2027.
Starting 1st September 2026, banks, telcos, and digital platforms are required to become AFCA members. This membership provides consumers with an independent path for dispute resolution under the SPF. Dr June Smith, AFCA’s acting Chief Executive Officer and Chief Ombudsman, stated, “We welcome the Government’s announcement and the confidence it has placed in us to act as the external dispute resolution scheme under the Scams Prevention Framework.”
First-of-its-Kind Global Initiative
This multi-party EDR service is the first of its kind globally, acknowledging the complex nature of modern scams that affect multiple sectors. AFCA has appointed David Lacey as its inaugural Chief Scams Officer, who will lead the establishment of the scams EDR scheme. Lacey remarked, “Scams are one of the most significant issues affecting consumers today. They are increasingly sophisticated and leave people facing devastating financial and emotional consequences.”
He emphasised the importance of achieving fair outcomes for both victims and the organisations involved. Lacey looks forward to welcoming new members to AFCA. The SPF aims to deliver a robust, fair, and efficient dispute resolution process. AFCA plans to work closely with stakeholders to ensure the scheme’s successful implementation and effectiveness in resolving disputes.
AFCA, a non-government ombudsman service, offers free, fair, and independent assistance with financial disputes, including issues related to banking, credit, insurance, advice, investments, or superannuation. Where an agreement cannot be reached, AFCA can issue binding decisions on financial firms.
