The Federal Government’s Department of Human Services has won a court appeal over the actions of a funeral insurer operating in indigenous communities.

A previous government ruling prevented the Aboriginal Community Benefit Fund (ACBF) taking payments through the Centrepay service, which allows the deduction of bills and expenses from Centrelink payments.

The ACBF had that ruling overturned in July, but the Federal Government won an appeal in the Federal Court and the block on Centrepay will now be reinstated.

The Consumer Action Law Centre has welcomed the verdict.

“There is now some level of oversight in how the Centrepay system is used, and that is very much needed,” Senior Solicitor (Insurance) Philippa Heir told insuranceNEWS.com.au.

“We speak to consumers often that have paid out thousands [for funeral insurance] and received nothing. Most can’t afford it and cancel, and some end up paying much more than the benefit.”