Bullying funeral plan companies could face criminal charges under new proposals

Companies caught bullying vulnerable people into buying expensive funeral plans could face fines and criminal charges under new government plans.

Some funeral providers have been found to use misleading sales tactics to get customers to pay up to £5,000 for costs.

But the use of high-pressure sales tactics for funeral plans could be outlawed, with the Financial Conduct Authority (FCA) stepping in to regulate the industry.

This would give customers the same protections as those buying insurance.

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.”

The proposed changes also mean access to the Financial Ombudsman Service will be on hand, improving consumer protection around any complaints.

Demand for pre-paid funerals grew by almost 200% between 2006 and 2018.

Last year, 177,000 plans were sold.

A consultation on the proposals is now open, with government regulation of the industry last updated in 2001.

(c) Sky News 2019: Bullying funeral plan companies could face criminal charges under new proposals