The Australian Financial Complaints Authority (AFCA) says it can no longer work on complaints about any of the Aboriginal Community Benefit Funds (ACFB) that are now in liquidation and have ceased operating.

“Even though we have had to stop work on complaints, AFCA can still accept new complaints about any of the ACBF funds,” it says, advising policyholders that they may wish to still tell the service about disputes so they are on the record, in case there are new developments.

AFCA has registered more than 500 complaints against four ACBF companies, also known as the Youpla group, since the ombudsman service began in 2018.

High pressure and misleading tactics used to sell the funeral cover policies were exposed at the Hayne royal commission. Four of the funds were placed into liquidation this month.

“AFCA acknowledges the devastating effect the liquidations will have on many First Nations people and communities, along with the frustration and hurt complainants and their representatives must feel about these developments,” it says on its website.

“We know that families put money into ACBF funds to help avoid a financial burden being placed on other family members at times of Sorry Business.”

AFCA has issued 178 decisions against ACBF companies, all of them in favour of the complainants due to misleading and deceptive conduct, and has made decisions ordering compensation totalling $1.4 million.

Funeral plan products are not currently covered by the proposed design of the Federal Government’s Compensation Scheme of Last Resort.