Last year the FCA/Financial Conduct Authority announced plans to begin regulating pre-paid funeral providers beginning July of this year, 2022.

This was in part due to the nature of pre-paying for a funeral, and also due to the fact some of the providers of the funeral had gone out of business, leaving the customer no funeral should they die, and no recourse to collecting their money back.

Funerals have gotten to be expensive, well into the thousands of pounds, depending on the type of funeral you decide to have.

Many people pre-pay their funerals to save their loved ones the cost of paying for a funeral.

These pre-paid funerals can be paid in one lump sum, or payments can be made.

If the funeral service or provider goes out of business or bankrupt, there is no real way for the customer to get their money back, or get their funeral arranged.

By being regulated by the FCA, this will all change. The FCA will conduct audits to insure the providers are financially sound.

As a consumer if a company you do business with, and they owe you a product or service you have paid for goes into Administration and bust, there is little you can do to get your money back.

You can be listed as a creditor who the company owes money to, but the reality is the company probably owes money to a lot of creditors, many of which are further up the queue than yourself.

Oddly enough if you owe money to a bank or loan company, and they go bust, you still owe the loan.

Your debt is considered an asset as a receivable to the defunct company, and the Administrators will seek to either collect that debt, or it can be sold to another company to be collected. This is all to gain as much money out of the bankrupt company to pay its creditors and debts.

The differences between being a consumer, and a debtor.

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