17/8/06
The State Government is considering regulating the pre-paid funeral funds industry to ensure consumers' money and interests are protected.
Consumer Protection Minister Michelle Roberts today released the issues paper 'Regulation of Prepaid Funerals' for public consultation.
"It is estimated that more than $40million of consumers' money is being held in pre-paid funeral funds and the amount will only increase as the population ages," Mrs Roberts said.
"While the vast majority of funeral directors are professional, we are concerned that a small number of businesses may be offering prepaid funeral services that could expose consumers to risk."
Among the concerns are:
- pre-paid funeral payments being invested in the name of the funeral director, rather than the consumer;
- contracts which do not include sufficient detail about the funeral services agreed upon or use vague terms like 'basic' funeral;
- contracts which do not include provisions for late or missed payment instalments;
- unfair provisions relating to cancellation of the contract;
- no cooling-off period when signing contracts; and
- high-pressure sales tactics to get grieving relatives to pay to upgrade services not requested in the original contract.
"Most consumers who pay for their funeral in advance do so for peace of mind, to ensure there is enough money to cover costs and to prevent their family having to organise the funeral in their time of grief," Mrs Roberts said.
"Some consumers pay for their funerals decades in advance, so how do we ensure their money is secure and they get the service they paid for?
"The lack of a cooling-off period for contracts is also worrying, because of the potential for a grieving and vulnerable elderly person to be signed up to a pre-paid funeral plan while organising a funeral for a deceased partner or family member."
A copy of the issues paper can be obtained from Consumer Protection by phoning 1300 30 40 54 or downloaded from the website
http://www.docep.wa.gov.au Those interested will have three months to make a submission.
Minister's office - 9213 6600
