Claim on Credit Card section 75 (1 Viewer)

Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
I took out a Funeral Plan earlier this year and paid £1500 by credit card.
It has just gone into administration despite frequent promises from them, in writing, that all monies would be guaranteed and put into a separate holding account.
Can I claim under section 75 now, or do I have to wait until it has completely stopped trading?

I checked the FCA website in July and the new licence that all companies had to have by Sept? and one had been applied for but now it seems that, like a lot of others, it did not reach the required standard.

Any genuine advice will be gratefully received, Thankyou!
 
OP
OP
L' Hobo
Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
I would ask citizens advice or just ring the credit card company.

That is my intention but, as there are some very intelligent and helpful people here who might have had similar experiences, I thought I might ask first? :unsure:

PS. I have looked it up on Martin Lewis website, but it has no information covering when to do it as far as I can see?

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Last edited:

eddie

LIFE MEMBER
Oct 4, 2007
8,187
41,579
Taunton Somerset
Funster No
540
MH
RV
Exp
since 1989
How can a “Pay now - Die later” Scheme ever work?

Costs and overheads can only ever go up, so unless the client is considerate enough to die pretty quickly there will be insufficient funds

Investing the fixed sum won’t keep up with inflation yet alone pay for the business’s running costs, vital to attract more customers

Another nail in the coffin is that they use current people payments to fund existing customers funerals, which is always a dead end business wise
 
Mar 23, 2012
9,607
32,389
sleights
Funster No
20,245
MH
c class
Exp
1
How can a “Pay now - Die later” Scheme ever work?

Costs and overheads can only ever go up, so unless the client is considerate enough to die pretty quickly there will be insufficient funds

Investing the fixed sum won’t keep up with inflation yet alone pay for the business’s running costs, vital to attract more customers

Another nail in the coffin is that they use current people payments to fund existing customers funerals, which is always a dead end business wise
I think if I was going to buy one of these I'd do it with a long established company like the co-op. The only time I considered it was when I looked after my mum's finances and she neared the savings limit for care costs it's a permissible thing to spend money on without it counting as hiding assets. In the end I didn't as I thought she wouldn't have done if she was compos mentis and it was working the system. When we eventually did need to arrange a funeral it cost less than a prepaid one so I suspect thats where they fund it from.

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Feb 16, 2013
19,832
52,440
uttoxeter
Funster No
24,713
MH
ambulance conversion
Exp
50 years
How can a “Pay now - Die later” Scheme ever work?

Costs and overheads can only ever go up, so unless the client is considerate enough to die pretty quickly there will be insufficient funds

Investing the fixed sum won’t keep up with inflation yet alone pay for the business’s running costs, vital to attract more customers

Another nail in the coffin is that they use current people payments to fund existing customers funerals, which is always a dead end business wise
Obviously they look at the person who is applying, then add a certain percentage for every year they think they will last.
Win some ,lose some but the money is in the bank.
 
Mar 23, 2012
9,607
32,389
sleights
Funster No
20,245
MH
c class
Exp
1
They insure them.So if called upon before there is enough the insurance coughs up
That still doesn't really answer eddies question as the insurance company must collect more than they pay it just smooths out the expenditure. In fact it makes it even harder to square the finances as there's a cut for the insurance companies profits
 
Jul 18, 2009
11,288
18,319
Manchester UK + Javea/Xabia Spain + Abu Dhabi
Funster No
7,543
MH
HYMER B644
Exp
2004
How can a “Pay now - Die later” Scheme ever work?

Costs and overheads can only ever go up, so unless the client is considerate enough to die pretty quickly there will be insufficient funds

Investing the fixed sum won’t keep up with inflation yet alone pay for the business’s running costs, vital to attract more customers

Another nail in the coffin is that they use current people payments to fund existing customers funerals, which is always a dead end business wise
Our friends late husband set up a plan years ago. I think it’s still going, might be called golden leaves !.

But I would suggest somewhere like the coop or just bingo money in an account.
 

Emmit

LIFE MEMBER
Aug 14, 2009
8,073
17,850
Cornwall
Funster No
7,967
MH
Pilote Explorateur
Exp
Jan.2014
With the greatest respect fellas, this isn't what the OP wants to read.
S75 gives you financial protection for any goods and services you may have bought with a CC for any goods and services you have purchased that cost between £100 to £30000.
You do not need to have used your credit card to pay for the whole amount but the value of £100 to £30000 is vital.

The CC Co. are EQUALLY LIABLE. You DO NOT have to wait to find out the Plan Co. are not covering you.

Contact the CC and claim your money.

Do not accept any wriggling. They are as responsible as the men in black.

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Mar 23, 2012
9,607
32,389
sleights
Funster No
20,245
MH
c class
Exp
1
With the greatest respect fellas, this isn't what the OP wants to read.
S75 gives you financial protection for any goods and services you may have bought with a CC for any goods and services you have purchased that cost between £100 to £30000.
You do not need to have used your credit card to pay for the whole amount but the value of £100 to £30000 is vital.

The CC Co. are EQUALLY LIABLE. You DO NOT have to wait to find out the Plan Co. are not covering you.

Contact the CC and claim your money.

Do not accept any wriggling. They are as responsible as the men in black.
It might not be what the op wants to read but threads often do discuss around the original question. It's also interesting for anyone being subjected to pressure selling now or in the future
 

Emmit

LIFE MEMBER
Aug 14, 2009
8,073
17,850
Cornwall
Funster No
7,967
MH
Pilote Explorateur
Exp
Jan.2014
It might not be what the op wants to read but threads often do discuss around the original question. It's also interesting for anyone being subjected to pressure selling now or in the future
I know all that and I'm as guilty as anyone else but the answer to a question can get buried.
 
Aug 26, 2008
4,790
25,372
B&NES
Funster No
3,823
MH
Van Conversion
Exp
since 2007
Prepaid funeral plans do resemble a Ponzi scheme.

Separate holding account? Needs more protection than mere advertising blurb.
 
OP
OP
L' Hobo
Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
Do you know for sure that the money is not in a separate account? Have you contacted the administer?

The administrator contacted me to say that they were looking for other companies to take over the assets but could take up to a year..
In my mind, that is another 12months of administrators wages that is coming out of the pot so it might be better to claim section 75 and go elsewhere?

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Feb 14, 2021
3,713
8,010
Milton Keynes, UK
Funster No
79,219
MH
Burstner Lyseo 727G
Exp
19 month year 18000 miles UK, Ireland, France, Spain, Germany, Italy. Campsites and off Grid.
I took out a Funeral Plan earlier this year and paid £1500 by credit card.
It has just gone into administration despite frequent promises from them, in writing, that all monies would be guaranteed and put into a separate holding account.
Can I claim under section 75 now, or do I have to wait until it has completely stopped trading?

I checked the FCA website in July and the new licence that all companies had to have by Sept? and one had been applied for but now it seems that, like a lot of others, it did not reach the required standard.

Any genuine advice will be gratefully received, Thankyou!

Personally I would just do it now - contact the credit card company straight away. If it's too soon they will tell you but at least you will have given them the heads up - registered your request.
 

Emmit

LIFE MEMBER
Aug 14, 2009
8,073
17,850
Cornwall
Funster No
7,967
MH
Pilote Explorateur
Exp
Jan.2014
The administrator contacted me to say that they were looking for other companies to take over the assets but could take up to a year..
In my mind, that is another 12months of administrators wages that is coming out of the pot so it might be better to claim section 75 and go elsewhere?
Not wishing this on the OP in any way but....
Can anyone say they've got 12mths?
 
OP
OP
L' Hobo
Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
Prepaid funeral plans do resemble a Ponzi scheme.

Separate holding account? Needs more protection than mere advertising blurb.

Totally agree but all this was checked and contracted, with FCA before new rules came in, and in answer to The Wino's earlier question, the Co-op when I checked, had not even applied for the new licence?

Like banks since the crash, Funeral Plan companies now have to have a lump sum of emergency contingency money before the FCA will issue licence.
 
OP
OP
L' Hobo
Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
Not wishing this on the OP in any way but....
Can anyone say they've got 12mths?

they are saying in the bumph they have sent, that it could take that amount of time??

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Langtoftlad

LIFE MEMBER
Apr 12, 2011
8,898
152,232
Langtoft, South Lincs
Funster No
16,024
MH
WildAx Aurora FB [PVC]
Exp
Since 2015
Contact your credit card company, tell them you wish to make a claim under Section 75.
They will send you the forms.
You don't have to wait.
You have not and will not receive the product/service as was sold to you - even if another company takes over.
It doesn't matter if the company is trading or not.

I have done several Section 75 claims and all have been successful. It's a simple but long winded process.
 
OP
OP
L' Hobo
Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
I wonder what happens meanwhile to anyone needing a payout?

Lets hope I do not need to find out! :giggle: but seriously, I believe there is still money in the account but not enough to cremate all the present customers and the lump sum the FCA requires?
 
Oct 25, 2016
5,588
31,688
Hartford Cheshire
Funster No
73,061
MH
Bailey Autograph 79-
Exp
Lots but slow learner.
I presume these funeral plans are for people that have limited asetts??
Too much bad press over the last few years about these plans. Not for us.
CC card should reimburse
 
OP
OP
L' Hobo
Feb 19, 2018
5,060
86,384
EAST ANGLIA
Funster No
52,484
MH
Murvi Morello
Exp
Since 1975
I presume these funeral plans are for people that have limited asetts??
Too much bad press over the last few years about these plans. Not for us.
CC card should reimburse

The way I looked at it as I am the youngest of my siblings and half are already dead and I do not have any immediate family, was,

that I could either spend £4500 on a 'normal' funeral OR, I could spend £1500 to get rid of my remains and put the other £3000 behind a bar somewhere for my friends and I, to enjoy themselves, I choose the latter!

It was a good night! :Grin:

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