Bereaved families in the UK are facing distressing bureaucratic failures when notifying companies of a death, according to a new investigation. One case involved a woman, identified as Ella Stevens, who informed Direct Line of her mother's death. The insurer responded by sending a letter thanking the deceased for the update and later sent an apology and goodwill cheque addressed to her late mother. Similar mishaps occurred with energy suppliers E.ON Next and British Gas, which sent bills demanding payment from the deceased.
The Financial Conduct Authority (FCA) has identified widespread failings in bereavement support among banks and insurers. Its reports found disjointed processes and inadequate technology often force relatives to repeatedly disclose details of a death. In one extreme case, a 91-year-old widow was left without access to her funds for three months after her bank mistakenly recorded her as deceased when she reported her husband's death.
Mark Sanderson, a financial services manager, encountered “bewildering obstacles” when handling his father’s affairs, including complex forms and unresponsive customer service. He noted that even without his industry experience, the process would have been impossible to navigate. The FCA’s consumer duty, effective since 2023, requires firms to support vulnerable customers, but enforcement remains inconsistent.
Three of the four companies contacted by the investigation apologised after intervention. E.ON Next said it was reviewing its bereavement procedures, Direct Line pledged to update its IT systems, and British Gas acknowledged bills should have clarified that payment was not due until probate was granted. Ofgem, the energy regulator, expects providers to offer tailored support to bereaved customers under its vulnerability strategy.
