Not upheld: Service failures generally complaint against Golden Charter Limited

Decision detail

Summary

Mr B purchased a pre-paid funeral plan from Golden Charter in 2007 for £4,118. When his original funeral director ceased trading, he requested that Golden Charter appoint his preferred funeral director T, who was willing to accept the plan but was not on Golden Charter's approved list. Golden Charter refused and Mr B also complained that cancellation would only refund his original payment less a fee, despite Golden Charter holding his money for years. The ombudsman found Golden Charter was contractually entitled to refuse the appointment as plan terms require approved funeral directors, and that the refund terms were fair as the plan is not an investment product but money held in trust with growth used to guarantee funeral costs that benefit Mr B's estate if the plan continues.

The Ombudsman's reasoning

The ombudsman found that Golden Charter's plan terms clearly state the selected funeral director must be one of Golden Charter's appointed directors, and Golden Charter was contractually entitled to refuse Mr B's request. The ombudsman considered it fair for Golden Charter to be selective about funeral director appointments due to regulatory responsibilities and commercial considerations. Regarding the refund, the ombudsman noted the plan is not an investment product but rather money held in trust, with growth used to meet rising funeral service costs that Mr B's plan guarantees. The ombudsman found that if Mr B's funeral were purchased at time of need, it would likely cost more than he paid, meaning his estate benefits from the growth if the plan remains in place. Communication issues were found to be inconsequential as Mr B had already been informed of the takeover by his original funeral director.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website