Upheld: Service failures generally complaint against Co-op Funeral Plans Limited
Financial Ombudsman decision DRN-6372093 of 2026-06-25T00:00:00+00:00. Service failures generally complaint against Co-op Funeral Plans Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6372093 |
|---|---|
| Decision date | 2026-06-25T00:00:00+00:00 |
| Firm | Co-op Funeral Plans Limited |
| Product | Life / income protection |
| Claim type | Service failures generally |
| Outcome | Upheld |
| Remedy | Co-op Funeral Plans Limited is required to: (1) Refund £175 to the estate for diminution in value of Mr C's funeral plan; (2) Add 8% simple interest per year to that amount, calculated from the date Co-op collected Mr C's ashes from the crematorium until the date the refund is paid; (3) If required by HM Revenue & Customs to deduct income tax from the interest, inform the estate of the amount deducted and provide a tax deduction certificate if requested. |
Summary
Mrs C, representing the estate of her deceased husband Mr C, complained that Co-op Funeral Plans Limited delayed returning Mr C's ashes following his cremation under a pre-paid funeral plan. After Mr C's death in April 2025, Co-op collected the ashes five days after cremation but did not return them to Mrs C for approximately seven weeks, during which Mrs C received unclear information about their whereabouts. The ombudsman upheld the complaint, finding that Co-op failed to deliver the funeral plan's 'care of the family' provision (valued at £375) to the required standard. Although unable to award compensation for Mrs C's personal distress due to FOS eligibility rules, the ombudsman required Co-op to refund £175 to the estate to reflect the diminution in value of the plan, plus 8% simple interest from the date the ashes were collected.
The Ombudsman's reasoning
The ombudsman found that Co-op significantly delayed the return of Mr C's ashes (seven weeks) and provided poor communication to Mrs C during this period. While acknowledging Mrs C's considerable distress, the ombudsman noted that under FOS rules, Mrs C was not an eligible complainant in her own right as the funeral plan was in Mr C's name, and therefore compensation for her personal distress could not be awarded. Instead, the ombudsman assessed whether Co-op had delivered the funeral plan to the required standard. The plan included a £375 provision for 'care of the family' which encompassed support and arrangement of services. The ombudsman found this provision was not delivered to the required standard due to the mishandling of the ashes and poor communication, thereby reducing its value. However, as the core purpose of the plan (preparation and delivery of the funeral) was still provided, a proportionate refund rather than full refund was appropriate. The ombudsman agreed with the Investigator's recommendation of £175 (approximately half the value of the affected provision) as fair and reasonable redress reflecting the loss of value to the plan.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Co-op Funeral Plans Limited, all decisions | 41 | 48% |
| Service failures generally, all decisions | 34,193 | 32% |
| Life / income protection, all decisions | 10,704 | 20% |
Source
Read the original decision on the Financial Ombudsman Service website