On 1 July 2022, AFCA introduced its new ‘user pay’ funding model to resolve financial disputes.  This new funding model will apply to all complaints closed from 1 July 2022, irrespective of when the complaint was first filed.

This new funding model will result in simplifying and streamlining the previous fee structure, and result in reducing the financial burden on those smaller members or infrequent users of AFCA.

The key features of this new model are:

• No complaint fees for the first five complaints closed within a financial year.

  
  

• All financial firm members pay a $375.55 flat fee, while Authorised Credit Representative (ACR) members pay their $65.98 annual registration fee.

• A simplified complaint fee structure reduces complexity and encourages early resolution.

• Heavy users pay their fair share towards AFCA’s service with the intention being to encourage internal dispute resolution.

• Introduction of flexible invoicing with progressing invoicing being available for members with user charges or certain limits.  Additionally, users with a charge of over $25,000.00 can elect to receive their invoices quarterly, bi-annual, or annually.

If you require any assistance with actioning or defending an AFCA complaint, please reach out to our team of lawyers.

*Disclaimer: This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice beforetaking any course of action.*