Complaints against four Aboriginal Community Benefit Fund (ACBF) companies have risen to more than 1000, prompting consumer groups to again push the Federal Government to step in to help affected policyholders.

Dispute cases lodged with the Australian Financial Complaints Authority (AFCA) over “unconscionable practices” relate to sales of funeral expense policies.

AFCA says before the ACBF companies – known also as the Youpla group – were placed in liquidation, it had issued 178 decisions against them, all in favour of the complainants due to misleading or deceptive conduct by the firms.

The ombudsman awarded more than $1.4 million in compensation to ACBF customers but understands 61 determinations remain unpaid. AFCA puts the unpaid compensation at close to $500,000.

AFCA has stopped working on complaints against the ACBF companies due to the funds being placed in administration.

Consumer Action Law Centre Aboriginal Policy Officer Samantha Rudolph says the “buck stops with the Government”.

“That is why we are asking for urgent compensation,” she told insuranceNEWS.com.au. “The Government also failed the community. They now have a duty of care to our First Nations people who have been scammed by this company – scammed out of performing their cultural practices.”

The Australian Securities and Investments Commission (ASIC) started Federal Court proceedings against ACBF Funeral Plans and Youpla Group in October 2020 following a referral from the Hayne royal commission. The commission heard evidence detailing the use of high-pressure sales tactics to sell worthless funeral plans to Indigenous communities.

Ms Rudolph says ASIC “did what they could, but a lot of it was far too late”.

“We know that more than 30,000 people signed up, some for multiple policies, so there are thousands more people out there,” she said.

“We are more concerned that people do not know that they have gone into liquidation. There are things that we can assist people with but a lot of community still does not know that this has happened.”

A few weeks ago the Consumer Action Law Centre and other consumer groups wrote a joint letter to ASIC pressing the regulator to hold Youpla directors and other office holders accountable for their actions.

They also want the Federal Government to assist policyholders who have been left without cover and who have been unable to receive a refund of premiums they have paid.