Youpla administrators says they will calculate members’ claims

A Townsville victim in an unfolding scandal over the collapse of a funeral insurer says he wants his money back.

A Townsville victim in an unfolding scandal over the collapse of a funeral insurer says he, like thousands of others who held the policies, wants his money back.

But what Lance and some 14,000 other policy holders will receive is unclear as liquidators and administrators investigate the Youpla Group.

The Coolangatta-based business was placed in voluntary administration on March 11, while its four funds have been placed in liquidation.

Condon resident Lance wants to know whether he will be refunded the money he has paid into his Youpla funeral expenses fund. Photo: Facebook

Lance, a resident of Condon, says he has been paying into the group’s Aboriginal Community Benefit Fund No 2 to pay for funeral expenses for himself and his family.

Documentation from the fund he received last month shows he has paid a total of just over $13,000, while correspondence says he is eligible for a $15,000 payout.

Lance says his money is gone and he feels like he’s been conned.

“I see it as a con job from the start. I would love my money back … but my money’s gone. Who knows?” Lance said.

Financial counselling service Indigenous Consumer Assistance Network and other policy holders are calling on the federal government to compensate victims.

So far there has been no response apart from the government saying it has acted on a recommendation from the financial services royal commission that all funeral expense policies be sold by a licensed provider.

In a YouTube video, ICAN financial counsellor Annique Jones says the community on Palm Island are deeply upset and asking where their money has gone.

David Stimpson of SV Partners is a voluntary administrator of the Youpla Group and liquidator of its four funds. Photo Mark Cranitch.

In a statement on the Youpla website, administrator and liquidator SV Partners says they are making arrangements to be appointed receivers over the group’s Aboriginal Community Benefit Fund 1 and Aboriginal Community Benefit Fund 2.

“Once we have been appointed receiver of Funds 1 and 2, we will be able to start calculating each member’s claims,” the statement says.

SV Partners says Youpla/ACBF are no longer accepting member payments but that if people’s payments are continuing they should contact their bank to cancel them.

The Youpla brand

Lance says Youpla, a privately owned company, represented themselves as Indigenous.

“This policy was designed to make out they were looking after our mob. They targeted the older generation. What makes me dirty is that they used (Aboriginal) people to do it,” Lance said.

ICAN says Youpla, at the peak of its operations, managed more than 30,000 policies and held more than $200m in funds.

Youpla voluntary administrator David Stimpson could not be contacted for comment on what, if any, return would be available to policy holders.

SV Partners says initial reports will be sent to members and creditors on March 25.

Originally published as Youpla administrators says they will calculate members’ claims