Funeral plans sector must be controlled
FUNERALS are emotional affairs. Having just said goodbye to my father, I know how traumatic they can be, irrespective of age (my dad was a sprightly 90). The tears flowed.
They are also expensive to arrange. We used a local independent funeral director in Sutton Coldfield that my brother knew (Lilies). They were quite brilliant and professional and treated my father with the utmost respect. Little gestures made on the day of the funeral (bowing before my dad’s coffin every time they walked past it) counted for a lot.
But even though we opted for the most basic of funeral services, there was little change from £3,200 once fees for the church, minister, crematorium and hearse were all taken into account.
Although every penny was money well spent, death is an expensive business. It explains why there is now explosive growth in the prepayment sector, where people are being encouraged to save for a funeral package. It also accounts for the popularity of funeral expense insurance plans (unbeknown to me until he died, my dad had one of these).
I have no problem with funeral prepayment plans per se. But I do have concerns over the regulation of this rapidly expanding sector.
At the moment, it is reminiscent of the Wild West Gold Rush of 1849 with providers and a plethora of comparison websites (some not as comparable as they allege) fighting for business.
Aggressive telesales tactics are common as is less than robust (and truthful) marketing material. Some plans are not as comprehensive as they appear, leaving loved ones to pick up a raft of unexpected costs.
While most providers adhere to a code of conduct laid down by the Funeral Planning Authority, the FPA is an organisation set up and funded by those it oversees. Of course, it does an honourable job but it lacks independence and clout. Some companies choose not to be members while the funeral industry does not even have an Ombudsman.
Thankfully, some big players (Dignity) and influential consumer groups (Fairer Finance) believe it is time for regulation to be beefed up before consumer detriment tarnishes the whole industry’s reputation. They will soon issue a joint report demanding such action. It cannot come soon enough. My preferred solution is for the Financial Conduct Authority to take the funeral plan industry under its wing. Only an independent regulator has the power to hold this mushrooming industry to account. MAYBE I am unlucky but nearly every time delivery company Yodel comes into my life, I am disappointed. Earlier this year, a bottle of champagne sent to a friend in Somerset ended up being delivered to the next village (it was never seen again).
The same friend then woke up one morning to find an unexpected delivery from Yodel – a package, ripped open, but not addressed to her. Good neighbour as she is, it was handed over to the rightful owner.
Nine days ago, my middle son Mark texted me saying I should expect a little package ahead of Father’s Day. Quite naturally, I was excited. The latest London Grammar CD? Into The Water by Paula Hawkins?
On Sunday, he wished me a happy Father’s Day, asking whether I had enjoyed his gift. I said it had yet to arrive. He was not a happy bunny, having paid for it to arrive early.
Last Tuesday, the gift finally appeared on my doorstep – a dendrobium orchid. Very nice indeed apart from the fact that its pot was smashed into a million pieces. Thank you, Yodel.
Unimpressed, Mark got on to Marks & Spencer from where he had ordered the magnificent orchid. Straightaway, without a quibble, it offered to send him a gift voucher for his disappointment – and me another orchid.
This little episode tells me two things. First, M&S continues to thrive because it is a slave to excellent customer service. Secondly, Yodel needs to shape up. WE GIVE the financial services industry a hard time – and rightly so. But with regards to the Grenfell Tower disaster, it has risen to the occasion, as my colleague Sally Hamilton reports. Its response – and that of staff – has been quite magnificent. An advert for the personal in personal finance.