The MFAA is aware that some members have received pre-expulsion notices from the Australian Financial Complaints Authority (AFCA) in relation to outstanding invoices that AFCA maintains are unpaid. We understand that receiving a notice of this nature will have caused a great deal of distress for those concerned and particularly given the short notice period and potential consequences of being expelled as a member of AFCA.
The MFAA have contacted AFCA and specifically raised concerns that some members have reported receiving a pre-expulsion notice despite having paid the amounts in question or not having received prior notices. We have also raised concerns regarding the very short 7-day notice period for what is an extreme action and suggested that greater notice should be given.
AFCA have advised that the pre-expulsion notice is the fourth and final notice in the process (with the invoice, 30-day notice and 60-day notice being the others) and in accordance with AFCA’s Constitution these notices are required to be provided prior to meeting of AFCA’s Board of Directors.
AFCA further noted that payments may not have been allocated properly for several reasons. These reasons include that reference numbers were not included when the payments were made, and that AFCA may not hold members’ most updated contact details.
Whilst AFCA will not be providing an extension in this instance, we have been informed that they will be reviewing their correspondence and process in due course and will consider our recommendation as part of that review.
As some of our members have reported not receiving communication prior to the pre-expulsion notice we have provided examples to AFCA which they are investigating as a priority.
The MFAA encourages all affected members to ensure that by 11 November 2021:
- All outstanding invoices referred to in the pre-expulsion notice have been paid.
- If you have paid your invoice, but have received a notice, that you contact AFCA urgently through ua.gro.acfa@stnuocca to provide evidence of that payment.
We also encourage members to ensure that AFCA has appropriate details and that reference numbers are provided with any payments made to AFCA. For more information on how to find your invoice and make a payment to AFCA, please see here.
Any member who is disputing an account or is experiencing financial difficulty in making payment should contact AFCA as a matter of priority to discuss a payment arrangement.
Members who continue to experience issues can contact ua.moc.aafm@ecnailpmoc.
The MFAA will continue to have further conversations with AFCA on this matter.
