Lanark and Hamilton East MP Angela Crawley has written to the Treasury calling for immediate action following the administration of prepaid funeral provider Safe Hands.
Numerous constituents who stand to lose significant sums of money have contacted the SNP MP in a bid to ensure their plans are honoured.
Safe Hands recently took the decision to withdraw its application for approval with the Financial Conduct Authority (FCA) ahead of new legislation coming into force in July which will require them to comply with FCA regulations.
All prepaid funeral plan providers must comply with FCA regulation by July 29.
In her letter to Economic Secretary to the Treasury, John Glen MP, Angela Crawley MP claimed that some companies do not intend to comply with the new regulation.
Commenting, Lanark and Hamilton East MP Angela Crawley said:
“I was dismayed to hear of the administration of Safe Hands and what this news will mean for thousands of people across the UK including several in my constituency.
“I have already been contacted by countless constituents who – through no fault of their own – stand to lose plans worth thousands that they had purchased to provide them with peace of mind in their end of life.
“This is yet another instance of UK Government legislation being unfit and unable to protect consumers.
“As a result, vast sums of money that hard-working people have saved their entire lives for may be lost.
“The UK Government must take action on this and hold Safe Hands to account for their negligence and to protect these consumers and ensure they receive either a full refund or receive an equal plan from another provider.”