Add-on refund specialist Claimo says consumers have been left “without any avenue for redress” after the Australian Financial Complaints Authority closed hundreds of disputes – despite having accepted similar cases in the past.

Claimo says it lodged 389 complaints against Coverforce Insurance Broking relating to the conduct of a former subsidiary of the brokerage, but AFCA decided last month to shut them down.

insuranceNEWS.com.au has previously reported on the issue and the potential impact on the ombudsman’s datacube statistics.

Claimo says the decision to deny jurisdiction is unfair because Coverforce previously agreed to accept similar complaints relating to its now defunct subsidiary.

“The add-on insurance policies at the centre of the dispute were sold alongside novated leases by Maxxia and Remserv, on behalf of Coverforce Insurance Broking Victoria (CIBV), a former subsidiary of Coverforce,” Claimo said. “That subsidiary was later placed into liquidation but had, for years, been the authorised entity responsible for the sale of add-on insurance policies to consumers nationwide.”

Claimo says that in June 2023, Coverforce gave AFCA a written undertaking to assume responsibility for “all past, current and future complaints involving CIBV” in exchange for the authority granting an early termination of CIBV’s membership.

“That undertaking was relied upon by AFCA, Claimo, and affected consumers for more than two years,” it added. “However, in June 2025, as hundreds of consumers lodged claims ahead of AFCA’s imposed deadline, Coverforce reversed its position and denied liability, asserting that its then general counsel lacked authority to make the undertaking and that AFCA had no power to enforce it.

“AFCA subsequently accepted Coverforce’s new position and proceeded to close the complaints, concluding that it lacked jurisdiction.”

Claimo says it will fight the decision, which it argues contradicts AFCA’s constitution, rules and statutory obligations to act fairly, efficiently and independently.

The refund specialist’s COO David Stavropoulos said: “AFCA and Coverforce are now tying themselves in knots to exclude liability for hundreds of complaints that both previously accepted were the responsibility of the Coverforce parent.

“Consumers are being left without meaningful redress while Coverforce escapes accountability – despite AFCA’s very purpose being to prevent exactly this outcome.”

Coverforce, which has recently been acquired by other Steadfast-owned businesses, declined to comment on Claimo’s statements.

AFCA told insuranceNEWS.com.au it “can only progress complaints that are within our rules”.

“Parties have a fair opportunity to make submissions before we make a final decision about jurisdiction,” a spokesperson said. “If we are unable to progress a particular complaint against a particular financial firm, a complainant may be able to lodge a complaint against a different financial firm.”