Funeral directors across the Black Country have joined together to welcome Government proposals to regulate prepaid funeral plans after fears some consumers are being ripped off.

Earlier this month, the Treasury announced that it would be bringing prepaid funeral plans under the regulation of the Financial Conduct Authority (FCA) amid fears that some plan providers are using misleading or pressure selling tactics to get vulnerable people to sign up.

Four local funeral directors - H.Porter & Sons in Stourbridge, J Vernon Kendrick Ltd in Lye, Trevor EW Hickton Ltd in Cradley Heath and N.E.Downing Ltd in Blackheath - have added their support to the Treasury’s move.

They say, that in the Black Country, there has been an increase in enquiries about plans and they are worried that people might be taking their chances with unregulated online providers.

H Porter & Sons says enquiries in 2018 were up by 136% year on year, whilst the other businesses say they have also experienced a rise in the number of calls recently.

The funeral directors say there are a number of pre-paid funeral plan providers which take unreasonable commissions from the sale of plans, potentially leaving the purchaser without enough funds to cover the cost of a funeral. This could result in additional unexpected costs for a funeral and added distress at a time of bereavement.

Funeral plans are a way of paying for a funeral in advance, as a lump sum or by monthly instalments.

The sector is currently self-regulated, with the Funeral Planning Authority (FPA) adding a layer of scrutiny to providers who chose to register. The FPA’s members abide by a code of practice aimed at ensuring customers get the funeral they have paid for.

Lucy Porter, managing director of H.Porter & Sons, said: “The Treasury’s announcement is very welcome as we would like to see greater protection for consumers than currently exists.

"Over the past year, we’ve noticed a clear increase in enquiries about funeral plans and there are a number of providers, particularly online, who in our opinion aren’t as transparent with what is included in the plan as they should be and take an excessive commission.

"Before Government regulation is introduced, our advice is if you do have a quote from an online provider and are unsure, either contact the FPA or your local funeral director who will be able to advise on the plan and alternative options if they feel the plan is inappropriate.”

Ross Hickton, managing director of Trevor EW Hickton Ltd, added: “People often take out a funeral plan after they have experienced a bereavement as a way of spreading the cost. They may think they are helping their family but sometimes the value of the plan falls significantly short. It’s important to make sure you know exactly what the plan will fund and what it won’t before signing on the dotted line.”

William Downing, of N. E. Downing Ltd, said: “We’re regularly approached by discount funeral plan providers wanting us to accept funerals from them but the cut they take from the plans is so large that it means we’re unable to assist. The plan provider will then go back to the family and say the funeral director wants more money but the reality is that families are unaware that the provider’s fees represent up to 30% of what they’ve paid in.

"They’ve been misled, in our opinion, and hopefully FCA regulation will put a stop to this kind of activity.”

Dan Kendrick, of J Vernon Kendrick Ltd, said: “The best person to talk to with regards to taking out a funeral plan is the funeral director whom you want to conduct the funeral. It’s in their interests to ensure a plan is in place that covers the cost of the funeral and that the fees charged for the administration of the plan are clearly set out.”

The Treasury is currently consulting on its proposals, details of which can be found at gov.uk/government/consultations/regulation-of-pre-paid-funeral-plans-consultation-on-a-policy-proposal.

For more information about funeral plans and FPA registered providers visit www.funeralplanningauthority.co.uk.