Thousands of clients have been left in the lurch after a branch of a controversial funeral insurer, accused of targeting vulnerable Indigenous communities, went into liquidation.
The notice was filed with the Australian Securities and Investments Commission (ASIC) last week regarding the Aboriginal Community Benefit Fund (ACBF) 2 business, a fund formerly managed by insurer Youpla.
The notice has left thousands of customers who have paid thousands in premiums over the past 30 years in the lurch about the fund's future, and comes just a year since ASIC began an investigation into Youpla, after it was pulled up in the Banking Royal Commission for falsely marketing itself as an Indigenous-owned business.
The notice also comes three months after an administrator was appointed to Fund 2 to review its inner workings.
Liquidator Robson Cotter said he understood it was a challenging time for many clients.
"There are limited funds available at this point in time," he said.
Complaints pile up
A number of determinations have been made against ACBF Fund 2 through the Australian Financial Complaints Authority (AFCA) in recent years.
Clients from Queensland, the Northern Territory, and the Kimberley region in Western Australia have been signed up to the funeral insurer, and solicitor Mark Holden said many had initially signed up believing the business was Indigenous-owned.
Mr Holden said it was difficult to know if any of those clients would ever see their money again.
Financial Rights Legal Centre casework director Alexandra Kelly said there needed to be immediate action to prevent even more clients from losing their money.
"We understand the Australian government is committed to closing the gap," Ms Kelly said.
"The liquidation of this fund will have a huge financial impact on thousands of disadvantaged First Nations people who thought they were planning appropriately for their funeral costs.
Nyikina Jabirr Jabirr woman Natalie Hunter, a former Aboriginal Community Benefit Fund employee, signed up her family members to the scheme believing it was Indigenous-owned.
Her family members have contributed thousands of dollars over the past two decades, and Ms Hunter said she was devastated to find out they might never get their money back.
"They're very angry with what's going on," she said.
"To think that no money is going to be returned when we've been contributing in good faith to cover the costs of funerals is [really upsetting]."
'It's devastating, gut-wrenching'
It's a view echoed by South Australian Narrung woman Elaine, whose last name has been withheld to protect her family's privacy.
She said her mother had been signed up to ACBF in 2008, and she joined her as a co-contributor in 2017.
Elaine said she was notified of the liquidation notice regarding Fund 2 late last month.
Elaine said she estimated her mother had put about $10,000 towards her funeral over time.
"She is devastated, she broke down and she cried. $10,000 is a lot of money for an Aboriginal lady, or for any Aboriginal family," she said.
According to Mr Cotter, it is still being determined which ACBF fund a number of clients are associated with.
Yamatji woman Glenis Little is owed $20,000 due to an AFCA determination made in her favour last year.
While Ms Little was part of a separate fund — ACBF Funeral Plans Australia Pty Ltd — she said she was now worried she would not be awarded her compensation due to one section of the business folding.
"That's really stressing me out because I'm 60 this year, and I can't leave my grandchildren to pay for that," she said.
Youpla Group has been contacted for comment.
