High-pressure selling of expensive funeral plans to be stamped out with fines
HIGH pressure selling of costly funeral plans will be stamped out in a crackdown by Ministers.
Fines and criminal charges will be brought against disreputable firms who rip off buyers paying upfront under government plans.
The products can cover a car procession to the church, a cremation and legal fees that will need to be met.
It’s feared door-to-door salesman pressure households to buy plans to boost their commission rather than meet specific needs.
Demand for the pre-paid products - that cover the price of a funeral - cost on average between £2,500 and £5,000 have soared by 200 per cent over the past twelve years.
The regulation of the sector will be overseen by the Financial Conduct Authority bringing it in line with their sectors such as the insurance industry.
A public consultation found widespread concerns over misleading tactics to boost sales.
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City minister John Glen, said: “Planning for your funeral can be a difficult experience, but one that many of us will need to go through at some point in our lives.
“It’s shameful that there are those out there who look to prey on people when they are in this often emotional and vulnerable state.
“That’s why I’ve taken the decision to regulate pre-paid funeral plans, so people can have more confidence in the products they’re being offered and peace of mind that their affairs will be handled correctly.”
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