The Australian Financial Complaints Authority (AFCA) has warned people affected by recent natural disasters, against signing up with insurance middlemen in the hope of progressing their claims.<\/p>\n
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AFCA Chief Operating Officer, Justin Untersteiner,<\/strong> says in a media release that AFCA is an ombudsman service that is completely free to use and legally binding on financial firms.<\/p>\n He encouraged people to think twice before signing contracts with claims management companies.<\/p>\n \u201cAFCA has heard reports of claims management companies charging people to manage disputes with financial firms,\u201d Untersteiner says.<\/p>\n \u201cWhile not illegal, AFCA is concerned that people are being charged excessive costs and\/or a percentage of the sum recovered, when in reality the service provided is of no real benefit to the person.<\/p>\n \u201cAFCA warns against signing binding contracts with claims management companies unless people clearly understand the likely cost implications. In most cases it is not necessary or of any real value.\u201d<\/p>\n The media release states that AFCA has also just launched a support hotline to ensure priority service for those impacted by the bushfires and that AFCA was ready and willing to assist to ensure financial complaints are resolved quickly.<\/p>\n It says the AFCA Bushfire Support Line (1800 337 444) is part of AFCA\u2019s disaster response process which identifies and expedites complaints about financial products and services from the impacted communities.<\/p>\n \u201cIf you\u2019re affected by the bushfires, and you find yourself in a dispute with your insurer or financial provider about a claim or request for assistance, AFCA can help resolve it. We have special processes that identify and fast-track complaints from people, primary producers and small businesses in impacted communities, so we can assist you to resolve complaints as quickly as possible,\u201d he says.<\/p>\n