Not upheld: Other regulated complaint complaint against Co-op Funeral Plans Limited

Decision detail

Summary

Mrs G complained that Co-op Funeral Plans Limited unfairly cancelled her pre-paid funeral plan after she changed banks in September 2025. She claimed she had provided new bank details but Co-op failed to set up the new direct debit, resulting in missed payments and eventual cancellation in December with a £250 fee. Mrs G also cited mental health difficulties affecting her ability to follow up. The ombudsman found that by October, Mrs G knew the direct debit was not set up and what was needed to prevent cancellation but failed to take action. Since Co-op was not aware of her vulnerabilities (having been told there were none), and the plan terms allowed cancellation after three missed payments, the ombudsman upheld Co-op's decision to cancel and charge the fee.

The Ombudsman's reasoning

The ombudsman found that although Mrs G claimed to have updated her direct debit details in September, even accepting this claim, it did not change the outcome. By the October call, Mrs G knew the direct debit was not set up, her account was in arrears, and what steps were needed to prevent cancellation. She agreed to call back the following day but failed to do so. The ombudsman concluded that once Mrs G had this information, it was reasonable for Co-op to expect her to take action. Regarding Mrs G's mental health difficulties, Co-op could only respond to information it knew about, and Mrs G explicitly denied having vulnerabilities when asked. Therefore, Co-op acted fairly in cancelling the plan in accordance with its terms after three missed payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website