Funeral plan company disappeared with our money

Topher

I've just emerged from half an hour's unfruitful searching the MSE website for answers to my questions, so apologies if I've managed to post on the wrong forum.
My inlaws have just had a notification from their bank that a regular payment they've been paying for a few years has been turned down. In other words the people they were paying to were no longer able to receive their payment.
This payment was part of a PRE-PAID FUNERAL PLAN so they've paid thousands into two plans for themselves as a couple.
The company they'd bought the plan with are called "EQUITABLE LIFECARE Ltd." (as distinct from Equitable Life). At the top of their membership cards is the address:- 88 Wood Street London EC2V 7RS and two phone numbers are listed under that address as well as a phone number on the reverse to contact in the case of bereavement.
We have tried the three numbers given and all go to a recorded message telling us that the number is no longer in use.
There is an article about them that we have found online, written by a journalist (Tony Hetherington) reporting that the company was not legitimately supported by the Funeral Planning Authority, that the manager of the company has been located, but that the manager walked away from the company and no longer accepts any responsibility for it. This happened in about 2016 (I believe) but my in-laws' payments only ceased this month.
We have not yet totted up the exact amount they have paid into their plans.
We don't know what we should do next. If anyone can advise us or share their experience, or tell us of other customers who are gathering evidence, please let me know. I haven't been able to find such advice on the MSE site, (although there are posts about the costs of funerals which are not pertinent to our current problem) but if it exists, please let me know.

Owain_Moneysaver

It's still an active company
https://beta.companieshouse.gov.uk/company/08333322

There's not a lot you can do apart from sue the company directly (if it has any assets) and go via the financial regulator.

[Deleted User]

Topher wrote: »

There is an article about them that we have found online, written by a journalist (Tony Hetherington) reporting that the company was not legitimately supported by the Funeral Planning Authority, that the manager of the company has been located, but that the manager walked away from the company and no longer accepts any responsibility for it. This happened in about 2016 (I believe) but my in-laws' payments only ceased this month.

If the company have been liquidated in the circumstances you describe, I'm not sure there will be any refund coming your way I'm afraid. You'd need to sue.

DoaM

Owain_Moneysaver wrote: »

It's still an active company
https://beta.companieshouse.gov.uk/company/08333322.

Accounts overdue
Next accounts made up to 31 December 2018 due by 30 September 2019

That perhaps speaks volumes.

Morglin

https://www.thisismoney.co.uk/money/experts/article-7741509/TONY-HETHERINGTON-Watchdog-dead-loss-victims-funeral-scam.html

Tony Hetherington produced another article last November in the Daily Mail.

You could, perhaps, try getting some legal advice, but it doesn’t look too hopeful.

Good luck.

lincroft1710

If the company has failed you may (and I stress may) be able to sue the director, but you should take advice and/or research this properly.

Obviously if he has no assets or goods worth seizing then this would be a waste of time. Experienced fraudsters either put everything in their wife/partner's name or everything is on finance or they disappear.

Bermonia

lincroft1710 wrote: »

If the company has failed you may (and I stress may) be able to sue the director, but you should take advice and/or research this properly.

Obviously if he has no assets or goods worth seizing then this would be a waste of time. Experienced fraudsters either put everything in their wife/partner's name or everything is on finance or they disappear.

Clearly I’ve missed something as a former director, I was under the impression that unless a personal guarantee was offered by the director (unlikely) then they are not liable for the assets of a limited company... perhaps there are some exceptions to this rule, however I would expect that there would be a very high threshold for any such action.

davidmcn

Bermonia wrote: »

Clearly I’ve missed something as a former director, I was under the impression that unless a personal guarantee was offered by the director (unlikely) then they are not liable for the assets of a limited company...

If they are trading properly, that's correct. If for example they continue trading knowing that the company ought to be liquidated, or are trading fraudulently, they can be personally liable. But for smaller creditors it's going to be tricky to put together the evidence and take that to court. In any event, there's no guarantee that the director has sufficient personal assets anyway (especially if there are a bunch of other creditors with an equal or greater right to recover from them).

lincroft1710

Bermonia wrote: »

Clearly I’ve missed something as a former director, I was under the impression that unless a personal guarantee was offered by the director (unlikely) then they are not liable for the assets of a limited company... perhaps there are some exceptions to this rule, however I would expect that there would be a very high threshold for any such action.

As well as signing a personal guarantee

If a director knows the company is insolvent and prioritises shareholders over creditors

If a director disposes of company assets below market value or for free

If a director overpays themself from the company account, thereby creating an overdrawn director's loan

If a director raises money to repay creditors fraudulently, e.g. obtaining finance using inaccurate information, or accepts money for goods/services which he knows won't be delivered

Topher

Thank you for the replies: I think embarking on suing someone is far too big a deal for my in laws, or for us on their behalf. What I need to find out is how to contact anyone at all from the company or a representative. They started the payments through an agent, but all contct numbers, addresses etc. have just gone dead or are closed off, yet, from the Tony Hetherington article it seems that the main address is still the address of two other similarly named companies. Is this something one takes to the police?

davidmcn

Topher wrote: »

Is this something one takes to the police?

Sounds like the police are already aware. Your in-laws can report their loss as well, though bear in mind the police don't offer a debt recovery service, they'll just be interested in pursuing any criminal aspect of it.