Calls to end needless bureaucracy adding to agony for bereaved families
Bereaved families are facing bureaucratic barriers, unsympathetic customer service staff and lengthy delays when trying to close the accounts of a deceased relative.
The Cost and Bureaucracy of Dying, a report by campaign group Fairer Finance and the death notification portal Life Ledger, found that some customers’ accounts were accruing charges for weeks after their death. And some investment firms were continuing to apply platform charges until the account closure had been completed.
Meanwhile, banks – including Halifax, Barclays and Bank of Scotland – charge unspecified fees that can exceed £500 for settling self-invested personal pension agreements, claiming they reflect administrative costs. Billions of pounds of assets remain stuck with banks, insurers and pension funds because of baffling red tape and a vested interest in stalling claims, the report claims.
Of the 49 savings providers surveyed, 22 require relatives to queue on a phone line, or in a branch, to notify them of a death.
The findings are borne out by readers who contacted the Observer after attempts to wind up a loved-one’s estate were thwarted by red tape and incompetence.
When Ron McDowall’s wife died of a heart attack, he sent a copy of the death certificate to her credit card provider Virgin Money, but received no response.
A follow-up call required him to negotiate numerous voice recognition prompts and a lengthy wait before he was connected to the bereavement team, which asked him to email the death certificate.
Weeks later, the bank sent a statement declaring that the account was in arrears and would incur default and interest charges.
When he contacted the bereavement team on the email address it had provided, he received an automatic reply informing
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