A newly-formed coalition is calling on the next Federal treasurer to urgently assist thousands of Indigenous families left out of pocket by an insurance scandal regulators failed to stop for three decades.

An open letter signed by more than 100 organisations was on Wednesday sent to the Labor and Liberal parties urging action to protect more than 10,000 families affected by the collapse of funeral insurance provider Youpla.

The Save our Sorry Business letter argues Aboriginal Community Benefit Fund, trading as Youpla, actively preyed on sorry business for nearly three decades, luring Indigenous people into schemes worth tens of thousands of dollars for "culturally appropriate" funerals.

It says regulators and governments were warned in 2019 of the exploitative practices of Youpla but chose to watch the fund collapse instead of stepping in.

Yorta Yorta woman Tracey Walsh, who signed up to an ACBF policy in 2005, is among those left frustrated by a lack of action from politicians.

"I haven't seen Labor, Liberal, National, Greens or whoever get involved," she said.

Consumer Action Law Centre policy officer Samantha Rudolph.

"People are always having a go at us not paying our own way; well that is what we did, we payed our own way, paid out of our pensions.

"The ignorance is complicit - they have known about this shonky business for 30 years."

All Youpla funds were in March this year placed into liquidation.

Some 17,174 policy holders poured in about $151.24 million into Youpla, according to Consumer Action Law Centre, with the average client owed about $10,000.

The coalition wants the government to provide assistance for Indigenous people who have recently died or who are in the final stages of life, and compensate families who have collectively lost millions of dollars.

Consumer Action Law Centre policy officer Samantha Rudolph it was time for the government to stand up and do the right thing.

"It is quite horrible to see we do have stories coming out of policyholders who have passed away and haven't been able to have a proper burial because there is no money there," she said.

"Consumer groups for a long time have told numerous govts about the issue... so what we are asking now is for them to step in and do what is right.

"All these band-aid fixes haven't done anything, they have now gone into liquidation, an inquiry needs to happen, and we need to make sure impacted people get compensation for what they paid."

ASIC is scheduled to take Youpla to trial over alleged misleading and deceptive conduct in May.