AFCA has now given firms 30 days to respond to complaints lodged against them, a nine-day extension from the previous 21 days the authority gives firms after notification.
The extension comes into effect immediately and applies to all complaints.
However, AFCA said the changes are a temporary measure and will be in place for up to six months, before being reviewed and adjusted as appropriate.
All internal dispute resolutions’ refer-back time frames remain unchanged.
AFCA chief executive and chief ombudsman David Locke said the extension ensures all parties involved had sufficient time to work together to resolve the complaint.
“AFCA has been talking to key stakeholders and has heard the complexities facing financial firms, small business and consumers in the current environment,” Mr Locke said.
“This recognises the pressure some parts of the financial services industry are under, with unprecedented levels of customer queries and financial hardship requests. It also gives consumers more realistic expectations about when they will get a response.
“Where the parties are unable to resolve complaints by themselves, the extension provides more time to do things like find the documentation required by AFCA.”
