Consumer Watch with Candice Evans: Don’t let your grief be taken advantage of

There’s nothing easy about losing a loved one, but we hope new WA laws will go a long way towards clearing up any confusion about what their final farewell will cost. Funeral companies must now publicly display their prices upfront to give consumers the chance to compare costs without having to meet with a representative from the business to get this information. Consumers should now receive a full breakdown of prices and know exactly what the total cost of the funeral will be, so there are no surprises later on. The new regulations in the Funeral Pricing Code of Practice stop sales practices that once made it difficult for consumers to make informed decisions at a very emotional time. In some previous cases, the final cost wasn’t known until after the funeral was held, leading family and friends of the deceased to believe they had been overcharged. Those consumers who decide to pay for their funerals upfront before they are needed should know they are protected by the mandatory Prepaid Funerals Code of Practice, which was introduced in 2021. The Code requires goods and services to be detailed in the contract, prices to be fixed at the time of signing, a 30-day cooling-off period and payments to prepaid funeral funds to be managed within secure investments under the name of the client until they are required. It’s important to note that prepaid funeral cover is different to funeral insurance, which should be treated with caution given ongoing payments are required for the rest of a consumer’s life – meaning they could pay significantly more than the actual payment their family will receive. Funeral bonds bought through a funeral director, a friendly society or a life insurer are another way of saving for funeral expenses. After paying an initial deposit, regular payments are made over time and the money grows in value with interest. Money invested in this way can only be used for a funeral, meaning it can’t be taken out earlier. Ultimately, we believe the simplest way to pay upfront for a funeral is to save up for it in a term deposit or savings account, separate to your everyday bank account. The Moneysmart website has more information about the different options for paying for funerals at www.moneysmart.gov.au. If you believe you have been misled about funeral costs, report it to Consumer Protection on consumer@dmirs.wa.gov.au or 1300 30 40 54. Candice Evans is the Consumer Protection senior regional officer for the Mid West