Dodgy funeral firms who prey on the elderly to sell pre-paid plans will soon face hefty fines or jail.
City minister John Glen is to crack down on misleading sales tactics used to fleece vulnerable old people out of thousands of pounds.
He said: “Planning for your funeral can be a difficult experience, but one that many of us will need to go through.
“It’s shameful there are those who prey on people when they are in an emotional and vulnerable state.”
The funeral plan industry is currently subject only to voluntary regulation.
But Mr Glen will change that so it is policed by the Financial Conduct Authority with powers to launch criminal prosecutions against offenders.
It will put the industry on the same footing as insurance, pensions and mortgages, with the same penalties for mis-selling. Demand for pre-paid funerals has grown 200 per cent since 2006.
Last year, 177,000 plans were sold, typically costing £2,500 to £5,000.
But the weak legislation has led to cases of door-to-door salesmen pressurising the elderly and vulnerable in their homes to earn commissions.
And there is no redress if the plan does not provide what it promised or the firm which sold it goes under.
Now customers will be entitled to compensation and be able to complain to the Financial Ombudsman Service.
