Scrabster couple left in 'financial difficulty' after collapse of pre-paid funeral plan business Safe Hands
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A Scrabster couple were "shocked" to find out they stand to lose out on their pre-paid funeral plan after the collapse of provider Safe Hands.
"I was absolutely livid when I got the letter," said Sylvia Sutherland (59), of St Clair Avenue. "You read it, then you read it again – you just cannot take it in. It is a shock to the system."
"You work all your days and save all your life to try and make things easier for your kids. It is a right kick in the teeth."
Safe Hands Plans, a pre-paid funeral plan business with more than 45,000 customers in the UK, went into administration on March 23. A letter to customers stated: "The appointment of the joint administrators was made by the directors of the company, after a period of severe financial challenge, which has left the business unsustainable in its current form."
The company has ceased to trade and will not be taking any new customers, but will be assisting current plan holders with contingency funeral planning services.
Mrs Sutherland took the single funeral plan out along with her partner, David Seaman (72), in May 2016 over a two-year period paying in a total of £3395. The plan was taken out in Mr Seaman's name.
She pointed out that thousands of people stood to lose money and felt that they couldn't be the only ones in the far north to be affected. "It is not only for ourselves I'm worried, a lot of people are older – even if I managed to help one person I will feel better."
Mrs Sutherland explained: "Companies like Safe Hands are going to be regulated after July 2022 but that is not helping the thousands that have already taken out plans and have paid for them or are still paying for them. Like many other people we cannot afford to lose this amount of money especially in the current climate.
"We scrimped and saved to save our kids being landed with debt. It has left us in financial difficulty now. We took that plan out in good faith that the money was kept in a trust – even if the company went bankrupt."
In their plan the company states that they guarantee there will always be sufficient funds to cover all funeral directors' fees and services.
She has emailed the First Minister Nicola Sturgeon about her concerns as well as local MP Jamie Stone, who has said he will look into it.
A Safe Hands Funeral Plans Support Group has been set up on Facebook and Mrs Sutherland is following the updates. She is still waiting for a claim form from the administrators.
Nedim Ailyan, partner at FRP and joint administrator of Safe Hands Plans Limited, said: "Safe Hands Plans is no longer in a position to continue trading as a result of the administration. 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 whilst we seek to find a longer-term solution.
"As joint administrators, we have been appointed by the court and will undertake a detailed statutory investigation of the financial position of the business and the events leading to the insolvency. This will support our work as we progress towards realising the company’s assets to make returns to creditors.
"Regrettably, the administration means the company is not in a position to issue refunds at this time. We appreciate how upsetting this period of uncertainty will be for Safe Hands Plans’ customers and their families.
"We will contact all plan holders, and personal representatives of any deceased plan holders, to outline the process for registering a claim as part of the administration."
Last Wednesday (April 6) the company issued an update stating that the joint administrators had agreed a further 14-day interim funeral services provision with Dignity Funerals Limited up to and including April 20.
The administrators are also continuing to work closely with the FCA to explore possible long-term solutions for plan holders.
Customers can contact Safe Hands via the customer service number: 0800 640 9928
