Collapse of funeral plan firm Safe Hands leaves thousands at risk of losing money
Thousands of people who had saved up to pay for their funeral risk losing money after their plan provider Safe Hands collapsed into administration.
The restructuring firm appointed to handle the process, FRP, said they were not able to provide immediate refunds to Safe Hands’ 46,000 customers, leading to concerns that pre-bought funerals may not be honoured.
For the next fortnight Dignity, one of the UK’s biggest undertakers, had agreed to step in and provide funerals on the company’s behalf. The window will be used by FRP to explore a longer-term solution, such as the transfer of its funeral plans to another company.
On its website Safe Hands customers are told that at present it is “uncertain that the funeral plans will be able to be fulfilled”. Customers should consider their plan “terminated with immediate effect,” it says. “This includes funeral plans that were part-paid and funeral plans that were being processed. No further direct debit or standing order instalments will be collected.”
The funeral selling industry is being overhauled and from this summer any provider will be regulated by the Financial Conduct Authority, a move that will give consumers a greater protection.
Safe Hands had failed after a period of severe financial challenges, including the strain caused by the pandemic, that had left it unsustainable in its current form, FRP said.
“Our immediate focus has been to secure an interim funeral services provision with Dignity for the next 14 days to ensure that any plan-holders that pass away are cared for while we seek to find a longer-term solution,” said Nedim Ailyan, one of the administrators.
“Regrettably, the administration means the company is not in a position to issue refunds at this time. We appreciate
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