The miss-selling of prepaid plans is still a big issue and I firmly believe if somebody who should regulate these, does regulate these, there will be a long list of unhappy customers who have been undersold, miss-sold or deceptively sold a prepaid plan, tying them to things they didn’t really want or to a service provider they thought they could choose and/or falling short when it’s needed. In time I envisage a PPi type scenario.
One such example happened to a family who always knew they wants to be looked after by us, a small family, local company.
Their loved one had taken a prepaid plan with Age Concern 20 years ago to the value of £2000. Quite a lot 20 years ago, for a funeral. In her mind it was always going to be with Dean Brothers and in her mind would be fully covered.
Unfortunately when the she did pass, the family contacted Age Concern who stipulated who the funeral director should be and that it must be one owned by Dignity. Dignity Funeral Services are a corporate chain of funeral homes, all purchased by Dignity but remaining operational under their original family name. Deception at best. Minimal is done for transparency of ownership.
Plans such as Age Concern or Help The Aged are tied in to funeral groups and nobody known until the plan is needed. There is the option to transfer out and receive the cash amount. This option yielded a loss of £700, meaning the family had only £1300 to contribute towards the funeral. 20 years of financial growth and it reached a dizzy height of losing £700. The paperwork has no detail of what should be covered, what the funeral options were or how this amount came to be.
If there is anybody out there that represents any kind of organisation that can or does regulate these plans, then why is this allowed? Shouldn’t people know how this amount is calculated and how it was calculated in the first instance?
A prepaid plan with Dean Brothers is itemised in every detail at inception to ensure costings are accurate and services are what the client requires. When the plan is needed it’s value is itemised and growth shown.
I can’t imagine in any situation, putting £2000 into a financial institution and then only receiving £1300, 20 years later, with no transparency of how the calculations or the money grew 9or didn’t grow).