Final insult: Families have spent up to £4,000 on funeral plans that may never pay out
Thousands of families have spent up to £4,000 on funeral plans that may never pay out, warns a report.
These deals promise to cover the cost of a customer’s funeral so that their family does not face a big bill when they die.
However, a mystery shopping report obtained by Money Mail last month raised concerns the elderly are being pressured into buying funeral plans that could leave their loved ones with shortfalls of hundreds of pounds for the cost of cremation, burial and doctors.
Family members would then have to step in to cover the extra costs.
James Daley, managing director of Fairer Finance, says: ‘We’re concerned a significant minority of businesses are taking too much in commission and administration fees and may not be putting enough aside to keep the promises they have made to customers.
‘If a funeral plan provider goes bust, there is no safety net — and it may already be too late to stop some customers losing money.’
The findings come as the Treasury prepares to launch a crackdown on the unregulated £3.3 billion funeral plan market.
Mr Daley is calling on City watchdog the Financial Conduct Authority to step in and be more proactive in policing the sector.