Expats demand urgent regulation of the funeral plan sector in Spain after collapse of Iberian  – CSN News

BRITS have called for stricter regulations following a loss of a small fortune in Spain to a shady funeral plan firm. 

You can also contact us by clicking here. Olive Press According to an investigation, the number of clients who are left with contracts that are worthless after the collapse of Iberian Funeral Plans may be thousands.

And with each policy costing over €3,000 (and sometimes as much as €7,250) the money missing is well into the millions of euros.

The disappearance of Iberian – as reported on our front page last issue – has left the expat community in tatters with joint legal action being threatened and many fingers being pointed. 

The Iberian company has been bombarded with calls and emails from clients who are anxious about the three packages they purchased.

With the website still apparently working it seems possible that unwitting clients may still be filling in details for the ‘Cedar plan’ for €3950 or the ‘Oak plan’ for €7,250.

A church service is being offered for €420 and ‘additional mortuary days’ at €185 per day.

It is incredible that there’s no confirmation on the website of the departure of the British company, but it appears that Stephen Nelson died recently.

We still haven’t received an official confirmation for any of the 12 numbers we have managed to contact from the offices that are spread across the Iberian Peninsula.

There were once nine offices – or at least local reps – in Alicante, Alhaurin el Grande, Lorca, Manilva, Mallorca, Nerja, Tenerife, Portimao And Tavira.

John Dyer, a client who is angry and has been disappointed, told of a John Dyer. Olive Press he was ‘angry’ that no official statement had been put out.

He insisted, “There’s a lot in a bank account so they must have accountants and solicitors who are knowledgeable enough to produce a report on the running of their business.”

The closest we have had to confirmation was from former Iberian salesman Roger Brierley, who said Nelson died of ‘natural causes’ in Portugal ‘about a month ago’.

The employee, based in Alicante, said everything seemed ‘fine’ when he left the firm three years ago.

He said, “Everything was in order but anything could happen within three years.”Olive Press“, adding that he also had a personal policy.

He said, “I have been told that there is a very low chance of anyone getting any money returned.”

Another ex-employee, insisted that Nelson had not been involved in the day to day running of the business for ‘at least’ two years, and had lived anything but a ‘lavish’ lifestyle as some victims have claimed.

The source, who will not be named, said that “he moved to Portugal a few years ago suffering from diabetes and bad health.” “He was extremely overweight and found it difficult to move.”

The former Manilva-based salesman continued, “As long as I was gone, he handed over the business to his sister in England and his ex wife.”

Experts and victims alike urge the Spanish government to take immediate action to avoid a similar disaster in the future. 

Linn Mcnally told 77-year-old Linn Mcnally. Olive Press she was ‘sickened’ after ‘scrimping and saving’ for years to afford her plan with Iberian. 

After my husband’s death, I struggled to survive on a basic pension. It was difficult to pay the monthly payments, but I somehow managed. She said: “I have sleepless nights since it’s all been paid off.” Olive Press.

The former teacher contracted a plan with Iberian in order to ‘make life easier’ for her two disabled daughters and busy son back in the UK. 

She trusted, like many expats did, the confident sales patter she heard from the salesman when she moved to Pedralba in Valencia. 

She said, “You are more likely to believe someone who is of the same nationality as you because you feel that you all share a common goal and can help each other.” 

“Spain has a long way to go before England, and the lack of regulations is like going back in time.” 

“There is no alternative but to trust more and that leads you to situations like these.” 

Billy Steele, a Costa Blanca resident who agrees with Billy: “These companies are there as soon as you arrive in Spain. You have a lot going on and so you trust them.”

The 65 year old veteran added: “The laws should do more. But everything in life today is a risk, especially for elderly, retired people. 

The scammers target them more because they know that the victims have money.

Neal Toplis agrees that there should be more regulations, but the problem lies in the fact that the system in Spain is different. You’ll be fine if you follow the Spanish system and get funeral insurance through a company such as Ocaso.

You also run the risk of buying English cowboys if you buy from many expats.

He suggests doing extensive research before investing in funeral plans, and ensuring that they are Financial Conduct Authority (FCA), regulated in UK. 

“Iberian offers services at a price below the market value. That is a huge red flag,” said the 52-year-old resident of Costa del Sol.

If you find something cheap, that means they’re using your money not for funerals but rather to buy Ferraris or helicopters in Puerto Banus, or mansions. 

He sympathised for victims seeking justice and warned that any funeral plan lacking FCA regulations could be abused to gain personal benefit. 

“People want to know who is responsible, but the only one in a coffin is that person,” he said. Olive Press.

Rob Barker, the head of compliance at Avalon Funeral Plans echoed Rob’s call for additional regulation.

“It shows the importance of protecting consumers in the prepaid funeral plans sector, particularly in Spain. The industry is still unregulated,” he said.

He called for improved ethical standards, compensation protection and support of the Ombudsman, as well as secure trust funds similar to those seen in Britain. 

By implementing these changes, consumers will be protected against funds being misappropriated and collapsed companies, while providers are held accountable for delivering the services. 

“In the UK, lobbying took many years before plans were brought under FCA regulations. A similar campaign has not been undertaken in Spain yet and it may not succeed as the expat population is so small.” 

Pre-paid funeral plans are mainly offered to expatriates in Spain, but Spanish citizens often opt for alternative funeral arrangements.