The Consumer Protection Commission introduced a new regulation yesterday aimed at protecting the legal rights of those who purchase prepaid funeral contracts by guaranteeing they will get their money back within 30 days if the contract is terminated within 14 days.
"Buying a contract like this is not as simple as buying life insurance or leasing a car. So we have decided that consumers should enjoy more flexibility," said Huang Hung-chuan (
Huang announced the new regulation during a press conference yesterday morning.
The regulation states that consumers will be entitled to terminate their contracts without incurring any penalty within 14 days of the signing of the initial agreement. For those who choose to terminate the contract after the 14-day period, only 80 percent of the value will be returned.
Upon terminating the contract, customers must receive their money back within 30 days. Prepaid funeral service providers must carefully review each customer contract for a five-day period before the contract is officially signed.
Both consumers and service providers should review their contracts annually and consumers are allowed to make changes to their contracts as long as the value of the contract does not change.
If the ownership of the funeral service provider changes hands, consumers are entitled to decide whether they want to stick to their original agreement or end it immediately. If the service cannot be carried out due to unforeseen circumstances such as death in a plane crash or war, the provider shall return all the money.
"These kinds of contracts usually last for more than a decade. It is quite possible that consumers may have purchased and signed the contracts without first thinking it over carefully," Huang said.
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