Thousands of savers are at risk of losing a fortune after early grave for funeral firm
- Major pre-paid funeral plan provider Safe Hands has fallen into administration
- Administrators say the firm cannot provide full refunds to all its customers
- The £4billion funeral plan industry faces a crackdown by the Financial Conduct Authority over misselling and high-pressure sales
A major pre-paid funeral plan provider has collapsed, leaving 46,000 savers at risk of losing huge sums.
Administrators say Safe Hands cannot provide full refunds to all customers, who may have paid more than £3,500 towards the cost of their funerals.
The firm went under as the £4billion funeral plan industry faces a crackdown by the Financial Conduct Authority over misselling and high-pressure sales.
Pre-paid funeral plan provider Safe Hands has fallen into financial ruin amid a crackdown on misselling and high-pressure sales on the funeral industry
Rival firm Dignity says it will fulfil funerals for Safe Hands customers who die before April 7.
A spokesman said it was working with the industry to ‘come to a resolution’ for Safe Hands customers.
Administrators FRP will contact customers to explain how to claim but so far there is no timetable for refunds.
However, it is not known how long it will take for any refunds to be paid.
James Daley, of campaign group Fairer Finance, said: ‘If the trust is seriously underfunded, the industry may back away from its promises to ensure all customers are taken care of.’
Nedim Ailyan, a partner at FRP, said: ‘As joint administrators, we have been appointed by the court and will undertake a detailed statutory investigation of the financial position of the business and the events leading to the insolvency.
‘Regrettably, the administration means the company is not in a position to issue refunds at this time.
‘We appreciate how upsetting this period of uncertainty will be for Safe Hands Plans’ customers and their families.’
An FCA spokesman said: ‘We will continue to support the administrators and industry to see whether there is a longer-term solution for Safe Hands’ customers.’