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Legal services win action against funeral insurer Youpla
The Victorian Aboriginal Legal Service and the Financial Rights Legal Centre received a win from the Australian Financial Complaints Authority which found that an insurance provider for funerals misled Aboriginal placeholders for profit.
Naomi Neilson
The Australian Financial Complaints Authority (AFCA) found, from two determinations, that ACBF Funeral Plans, owned by Youpla, was misrepresenting itself as an Aboriginal-owned and controlled, not-for-profit community organisation serving the Aboriginal and Torres Strait Islander communities as it contends with several other cases.
Financial rights Legal Centre chief executive Karen Cox said the determination was positive for some of its vulnerable clients and encouraged others to come forward. Ms Cox said the Hayne royal commission revealed systematic failures on the part of funeral insurance providers including Youpla to meet community standards.
“This company – now trading as Youpla – has long exploited the Aboriginal community by posing as an Aboriginal-owned company with a product meant for specific needs,” she added.
“Funeral insurance has always been a terrible product, especially if you entered into it at a young age. It has a high cancellation rate and leaves you nothing if it is cancelled, due to non-payments, regardless of how much has already been paid.”
Victorian Aboriginal Legal Service (VALS) CEO Nerita Waight said they are pleased with the outcome, noting that while immense progress has been achieved due to the royal commission into the banking sector, this outcome has highlighted the work needed to facilitate the redress of exploitation of members of the community.
Ms Waight further asserted that the outcome is particularly pleasing for the clients who hope that this outcome serves as a deterrent to those seeking to mislead members of the Aboriginal and Torres Strait Islander communities for profit.
“These decisions again bring into stark reality the findings of the royal commission and the findings of the royal commission painted a rather bleak picture of the treatment of many Aboriginal and Torres Strait Islander people within the financial services system,” Ms Waight said.
Financial Rights currently has seven other cases against the companies under Youpla pending determination while VALS intends to file further complaints shortly.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
