Calls for government to step in after fund collapse rocks FNQ Indigenous communities

Hundreds of Far North Indigenous families have been left facing financial ruin after the collapse of an allegedly “predatory” funeral fund.

THERE are calls for government intervention after hundreds of Far North Indigenous families have been left facing financial ruin after the collapse of an allegedly “predatory” funeral fund.

First Nations communities, in particular Yarrabah, have been plunged into crisis after insurer Youpla (formerly Aboriginal Community Benefit Fund) went into liquidation, taking with it the hard earned cash of an estimated 20,000 people across the country who had been storing away savings for funeral costs.

It is known as Sorry Business among First Nations peoples.

Yarrabah resident Agnes Neal said she is furious and said she feel betrayed that the $15,000 she scraped together over the years to save for her funeral has ben lost when the Aboriginal community Benefit Fund collapsed. Picture: Supplied.

It comes amid allegations of “predatory and misleading sales practices” targeting vulnerable and disadvantaged communities, with 768 people in Yarrabah caught up in the saga; the most of any across the country with losses running into the millions of dollars.

Yarrabah Aborginal Shire Council Mayor Ross Andrews said the collapse was having a devastating cultural and financial impact on his community.

Yarrabah mayor Ross Andrews has been left appalled by the impact of a funeral funds collapse on his town. Picture: Brendan Radke

“This represents a massive betrayal of our community members,” he said.

“They targeted our community, working door to door, selling a funeral fund and the need for our community to join.

“I am disheartened by the scale of their exploitation of First Nations people, not just in Yarrabah, or Far North Queensland but also Australia-wide.”

Yarrabah resident Agnes Neal, who has held a policy from 2006 until it went bust this year, said she felt “betrayed”.

“It’s left me traumatised, angry and stressed,” she said.

“I’m stressed and wondering where am I going to go from here?

“We need the Federal Government to step in.”

Bettina Cooper, Aboriginal Financial Counsellor at Mob Strong Debt Help, said a Save Sorry Business coalition is calling on the Albanese Government to “urgently assist” and compensate all current and former Youpla customers.

The Youpla organisation has gone into liquidation, leaving thousands out of pocket across the country.

She estimated there were 2200 policy holders registered with the ACBF at the time of its liquidation from Cairns, Yarrabah, parts of the Cape, Mareeba, Kuranda and Tully.

“Elders are being left in morgues as the money their families were relying on to pay for Sorry Business disappeared overnight” Ms Cooper.

She also claimed Youpla went door-to-door to “systematically target disadvantaged and vulnerable communities.”

“In some smaller remote towns, almost every household was sold into a Youpla policy – including teenagers and children.

Financial Services Minister Stephen Jones. Photo: AAP Image/Mick Tsikas

“Youpla targeted people who were doing the right thing by trying to ease the financial burden on their families when they passed.

“Instead, these families are in a state of deep despair, facing financial and cultural crisis.”

The liquidator appointed for the Youpla Group, David Stimpson, said it could take “more than a year” to investigate.

ASIC has launched an investigation into current and former directors.

Financial Services Minister Stephen Jones, who visited Yarrabah locals affected by the collapse, said his government would investigate options for compensation following Labor’s election in May.

He said he was “deeply concerned” about the impact the collapse of Youpla has had on vulnerable Indigenous families and communities and was “committed to finding a resolution for victims.”

“I recently met with Indigenous members of the Yarrabah community and consumer group representatives in Far North Queensland and assured them that the Government is aware of the full scale of this issue and is taking action,” he said.

“The Government is actively working on potential solutions to address this issue and I hope to share more on these in coming weeks.”

Follow @markcmuzza

Originally published as Calls for government to step in after fund collapse rocks FNQ Indigenous communities