The collapse of funeral fund, Youpla, is having a devastating cultural and financial impact on First Nations communities with Inverell among the worst towns affected.
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Formerly known as the Aboriginal Community Benefit Fund, Youpla's decline left at least 20,000 residents without cover nationwide.
Recently released data revealed Inverell was among the top 10 most affected communities in Australia with more than 200 people impacted.
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Ashford, Delunga and Tingha were also among the towns caught up in the collapse.
Member for New England, Barnaby Joyce, said families had already reached out to his office.
Mr Joyce said families should never be left in a position where they cannot lay a loved one to rest.
"My electorate office has been contacted by a number of families, and I have since written to the minister responsible, Stephen Jones, for assistance while my staff are working through individual cases," he said.
The Save Sorry Business coalition is also calling on the government to urgently assist.
Aboriginal financial counsellor at Mob Strong Debt Help, Bettina Cooper, said the government had indicated a willingness to work with First Nations people, and now was the time.
"We need compensation so they can bury their loved ones with dignity. The longer it takes for a resolution the more traumatised people will be," Ms Cooper said.
"It's creating inter-generational trauma and debt," she said.
"Some are only first and second generation money earners. They don't have the same resources behind them because of previous socioeconomic issues.
"What they've tried to do by joining, is meet the need of Australia's culture to bury their people respectfully without creating debt, and this collapse and failure of previous government regulators has actually put them at a greater socioeconomic disadvantage and again widened the gap.
"The money that's been lost is well in excess of $50 million and if we don't do something we are going to have another generation of socioeconomic disadvantage."
Ms Cooper said one of the greatest concerns was residents being more prone to poorly regulated credit products.
"We already have clients who are having to take money out of their super and taking on additional debt, and additional jobs to meet the needs of sorry business."
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