The family of a grandmother who paid almost £1,200 into a funeral plan were left baffled after the company offered to pay out just £240.
Callum Taylor, 24, grandson of Christine Bailey, said the family had “no idea” his late grandmother had a plan in place with Safe Hands.
It wasn’t until one month after Mrs Bailey was cremated that his mother found monthly direct debit payments of £25.90 leaving her account dating back four years.
Mrs Bailey sadly passed away from cancer on September 2, 2021. She took out the Safe Hands policy in November 2017 and had paid £1,040 into the plan.
But the family say they’re confused as to why she had the plan in the first place, as Safe Hands does not work with the funeral director the family have used for years.
Safe Hands separately confirmed to The Mirror that they’ve never worked with Alan Jones Funeral Directors, which is the company Mrs Bailey wanted to use for her service.
Mrs Bailey also already had another funeral plan with Sun Life, which paid out after her death and was used by the family to pay for her funeral.
She had taken out the Sun Life plan before Safe Hands, the family confirmed.
Speaking to The Mirror, Mr Taylor said: “Her husband was buried with the same funeral director and so was her mum. She was very clear she wanted this particular funeral director.
“She used to be a carer but had to retire after suffering a stroke. We don’t think she actively went out to find this plan.
“We would always have to push her to sort things and we never knew about this plan. She had another funeral plan as well, which is also confusing.”
Mr Taylor continued: ”For us, it’s her money that has been disappearing into a pot for years. It’s a bit of a kick in the teeth.
“That money they haven’t paid, that was her money - so where does that go?”
After complaining to Safe Hands, the family of Mrs Bailey were originally offered £240 back “as a concession” which they haven't accepted.
The firm told them they weren't entitled to a refund as they hadn’t used their service.
Safe Plans says it doesn’t offer refunds to policies that are cancelled after the policy holder has passed away. It adds that only the policy holder can cancel a plan.
In the Safe Hands welcome pack sent to Mrs Bailey, and seen by The Mirror, it states that a next of kin or representative, or executors of a will, must contact the company in the event of a death.
Only after they’ve been informed, will Safe Hands then appoint a funeral director.
Have you had trouble claiming money from a funeral plans company? Let us know: mirror.money.saving@mirror.co.uk
But the family of Mrs Bailey says it was impossible for them to contact Safe Hands, as they weren’t aware of the plan in the first place.
The family later complained to the Funeral Planning Authority (FPA) and were offered a full refund of £1,040.
The FPA ruled that Safe Plans hadn't breached its terms of conditions in regards to its cancellation policy, but said there was "insufficient evidence" to support their position that they hadn't mis-sold its product to Mrs Bailey.
Safe Hands told The Mirror it had agreed to fully refund the family of Mrs Bailey before the final outcome of the FPA review.
A spokesperson said: “Though the family referred their complaint to the FPA, Safe Hands made their own decision to provide a full refund out of sympathy for the family’s position.”
New rules to regulate the funeral plans market will come into force from July 2022.
The measures will force firms to ensure that plans are sold fairly, perform as expected and provide value for money.
Martyn James, consumer rights expert at Resolver, said: "This case highlights how important the increasingly delayed regulation of Funeral Plans is.
"It's impossible to turn on the television during the day without seeing an advert for a funeral plan, yet the sales process, release of funds and support for the wider families with some plans is unclear and often unfair in some instances.
"It's not enough to put the burden of informing family back on to the person buying a plan - and any firm selling a funeral plan has a moral obligation to ensure that the person purchasing understands how it works and doesn't already have plans in place."
