Expats who’ve lost thousands demand tighter regulation of Spain’s funeral plan sector after collapse of Iberian 

BRITS are calling for tougher regulations after losing a small fortune to a dodgy funeral plan company in Spain. 

An Olive Press investigation suggests the number of clients left with worthless contracts after the collapse of Iberian Funeral Plans could run into the 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. 

We have been inundated with emails and calls from anxious clients, who bought one of three different packages from the Iberian firm.

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.

While incredible that the website still has no basic confirmation of the company’s departure it seems certain that its British owner Stephen Nelson has recently died.

However, we have yet to get official confirmation from any of the dozen numbers we have been able to get from the various offices which stretch 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.

One angry expat client, who has lost out, John Dyer told the Olive Press he was ‘angry’ that no official statement had been put out.

“There is a lot of money in an account somewhere so surely they have solicitors and accountants with the knowledge to put out a statement of the running of the business,” he insisted.

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.

“Everything was above board, but of course anything can happen in three years,” he told the Olive Press, adding he himself also had a policy.

“I’ve been told it is unlikely that anyone will get any money back,” he insisted.

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.

“He moved to Portugal some years back suffering from diabetes and poor health,” said the source who we are not naming. “He was very overweight and struggled to move around.”

The former salesman, who was based out of Manilva, continued: “As far as I was away he had handed over the running of the business to his ex-wife and sister in the UK.”

Either way, victims and experts alike are understandably urging Spanish authorities to take action to prevent disasters like this from happening again. 

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

“After my husband died, I was trying to get by on a basic pension. It was very difficult and I struggled to keep up with the monthly payments but somehow I managed it. I’m having sleepless nights now that it’s all gone,” she told the 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. 

Like many expats, she trusted the confident sales patter of the salesman she met when she moved to Pedralba, Valencia. 

“You’re more likely to trust someone of your own nationality because you think you’re all in the same boat and helping each other,” she said. 

“Spain is certainly still behind England in a lot of ways, and it’s like stepping back in time with a lack of regulation. 

“You have no choice than to be more trusting and that leads to situations like this.” 

Fellow Costa Blanca resident, Billy Steele agrees: “These companies hit you as soon as you land in Spain and you have a million things going on so you put your trust in them.”

The 65-year-old former veteran continued: “The law should do more but everything in life is a risk nowadays, especially for older, retired people. 

“They are targeted more because scammers know they have money.”

Funeral director, Neal Toplis, agrees: “Of course there should be more regulation but the problem is the system is different in Spain. If you use the Spanish system, which is getting funeral insurance with a company like Ocaso, you’ll be ok.

“But many expats want an English product, meaning you also risk buying from English cowboys.”

He advises doing thorough research before investing in a funeral plan, including ensuring it is Financial Conduct Authority (FCA) regulated in the UK. 

“Iberian offered services below market value and that is immediately a red flag,” the 52-year-old, based on the Costa del Sol, warned.

“If it’s cheap, it’s because they aren’t using your money for funerals but to buy Ferraris, helicopters and mansions in Puerto Banus.” 

He sympathised with victims looking for justice, warning any funeral plan without FCA regulation runs the risk of being abused for personal gain. 

“People want someone to pay for this, but the only person responsible is in a coffin,” he told the Olive Press.

While we are trying to establish if this is definitely the case, Rob Barker, Head of Compliance at Avalon Funeral Plans, echoed the call for further regulation.

“It highlights the importance of consumer protection in the pre-paid funeral plan sector- especially in Spain where the industry remains unregulated,” he insisted.

He called for better ethical standards, compensation protection, ombudsman support and secure trust funds like those seen in the UK. 

If these changes were put in place, consumers would be protected from funds being misused and companies collapsing, with providers held accountable for delivering services. 

“In the UK, it took years of lobbying to bring plans under FCA regulation and similar advocacy has not yet taken place in Spain and may not gain traction as the number of expats here is relatively small compared to the overall population,” he said. 

“Pre-paid funeral plans in Spain generally target expatriates, while Spanish nationals often use alternative methods for funeral expenses.”