The funeral plan provider, Safe Hands, has faced a fraud inquiry after it collapsed, leaving thousands of people in the UK with lost savings. Almost 46,000 people had paid money into a fund dedicated to future funerary costs. However, following the business’s liquidation, pre-paid funerals may not be fulfilled, with some individuals having made payments of up to £4,000.
The Serious Fraud Office (SFO) has revealed it is investigating allegations of fraud against Safe Hands and its parent organization, SHP Capital Holdings Ltd. Funeral plans have become increasingly popular lately, given the extraordinary rise in funeral prices. Nevertheless, lack of protection if a provider went into administration has also raised considerable concerns.
Since last July, companies seeking to operate as funeral plan providers must have approval from the Financial Conduct Authority (FCA). As reported previously by the BBC, Safe Hands chose to withdraw its application for approval from the FCA and later went into administration in March 2020. Administrators maintained that the company faced various problems, of which many were allegedly linked to the pandemic.
Creditors of the collapsed enterprise have alleged around £70.6m, according to administrators who are keeping customers informed of the situation. Officials are now selling off the failed firm’s investments so that they can repay some of the funds to those who lost money. Yet, they cautioned that a deficit exists, implying that the worth of these investments is insufficient to fulfill the company’s funeral obligations
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