Posted on 11 Jul 2019
Aussies who may have lost money after being given shoddy advice by financial lenders, mortgage brokers and banks up to 10 years ago can now have their claims heard.
This is according to the Australian Financial Complaints Authority who have – for one year only – extended the time limits for financial negligence claims from six years (in some cases, two years), to 10.
Principal Lawyer Eileen Nguyen, who heads up Slater and Gordon’s professional negligence department, said the time extension for older complaints meant that those who may have lost money now have the opportunity to be compensated.
“Unfortunately, everyday mums and dads trying to plan for their futures sometimes lose life savings after trusting and adhering to the advice of financial institutions including brokers, lenders, banks, insurers or superannuation fund trustees,” Ms Nguyen said.
“It could be a matter of irresponsible lending to those who would not have the means to make the mortgage repayments, or poor investment product advice which results in a substantial amount of money being lost.
“When this happens, someone needs to be held to account, and those who have lost money have the right to seek compensation.
“Many people would have not known that they could make a claim for compensation before now, so if anyone has lost money from poor financial advice dating back to as early as 1 January 2008, they have 12 months to pursue their claim.
“The time limit will revert back to between two to six years after June 30, 2020.”
Ms Nguyen said financial disputes were often complex, and that advice from legal experts could help navigate the process.
The usual time limit for making a complaint to AFCA is six years from the date a person becomes aware of the financial loss. This is reduced to two years, however, if it has gone through the financial firm’s internal dispute resolution process.
The extended time limit for claims officially begins this month.
Media Contact Therese Allaoui (03) 9602 6844 / 0428 994 937