Thousands of elderly people who bought pre-paid funeral plans from provider Safe Hands in danger of not getting funerals they paid for
Thousands of elderly people who bought pre-paid funeral plans from provider Safe Hands are in danger of not getting the funerals they paid for.
This follows the stalling of talks between Safe Hands and the City regulator to ensure funerals are honoured post-July 29.
This is when the Financial Conduct Authority begins regulating the funeral plans market.
Concern: Safe Hands suddenly withdrew its application for FCA authorisation last month and stopped selling new plans
Wakefield-based Safe Hands suddenly withdrew its application for FCA authorisation last month and stopped selling new plans.
There are now fears there is a shortfall in the trust fund that customers’ money was put into, meaning there is not enough to fulfil all the funerals promised.
The fund is overseen by Somerset-based Sterling Trust Corporation. Safe Hands has been charging customers up to £495 to withdraw their money.
On Friday, the FCA said: ‘We continue to work with the industry for a long-term solution for Safe Hands customers.’