Aboriginal people stung by funeral scheme the watchdog ruled ?deceptive? may not get a cent back

Aboriginal people who paid into a funeral scheme that the ombudsman has ordered to repay customers, after finding it mislead and deceived them, face losing any chance of a refund now the scheme has gone into administration.

Advocates for dozens of families affected by the collapse of Aboriginal Community Benefit Fund No. 2 are now appealing to the federal government to step in and help ensure they are not left out of pocket.

However, they are not covered by a federal government proposal for a compensation scheme of last resort that is still on the drawing board, despite it being a key recommendation of the banking royal commission.

Directors of Fund 2 put it into administration in late November.

Administrators for the fund said they were facing a "a huge issue" working out what it owed to members based on the paperwork they had seen, and it is unclear whether the fund has the assets needed to cover its debts.

Mob Strong, a financial advocacy service for Aboriginal people, said it is liaising with the administrators to ensure the rights of consumers were protected.

"We implore ACBF's administrators to ensure Aboriginal and Torres Strait Islander people are paid the refunds they are owed in full," Mob Strong lawyer Mark Holden said.