FTC proposes guidelines to tax the dead-Your Funeral Guy

FTC Headquarters Washing ton DC -Image via Wikipedia

Unfortunately debt collection does not stop when you die, In age where many American’s are overcome by debt. Debt has become a problem both before and after death.

The Great recession has caused many debt difficulties in the USA. The Wall Street Crash of 2008 has forced many into foreclosure and debt default. Mamuch debt has gone to horrendous, heartless third party collectors

The Federal Trade Commission is seeking to revise the protocol surrounding two of life’s touchiest subjects: debt and death.

Debt collection has become an increasingly controversial practice as more Americans default on loan payments. Government data show the charge-off rate on consumer loans spiked to 6.71 percent during the second quarter – the highest level in at least 25 years. (Five years ago, the charge-off rate – loans written off by their lenders as uncollectable – was 2.4 percent.) Meanwhile, debt collection ranked second on the FTC’s list of most common consumer complaints last year after not even cracking the top 20 two years ago.

The rise in debt collection has spawned a niche market devoted to recouping money from those who die with unpaid bills. The FTC began investigating the practice several months ago and found confusion among collectors over whom they were allowed to contact and what they could say, said Joel Winston, the agency’s associate director of financial practices.

“The debt doesn’t disappear when the person dies,” he said. “It’s still a valid debt, and the collector can still collect it.”

But the question is: From whom?

via www.thefiscaltimes.com

Death is  a burden on families, but collection  on the deceased’s debt causes more of a burden.

Related articles

• You: FTC proposes new guidelines for collecting debt from dead people (washingtonpost.com)
• Feds propose new rules on debt collection from the deceased (walletpop.com)
• FTC May Allow Debt Collectors To Target Families of Deceased (smarterotti.com)
• FTC Takes On Debt Collectors (online.wsj.com)

CBO issue A Report On Bereaved Consumers Bill Of Rights Act-Your Funeral Guy

HR3655 will stop future Burr Oak Cemetery Scandal s-Image via Wikepedia

The Congressional Budget Office(CBO) has issued a report on HR3655 The Bereaved Consumers Bill of Rights Act.  This is also known as Funeral Rule 2.

The Bill Essentially will require cemeteries to operate under the funeral rule. Cemetery records on a computer are required. Price disclosures to consumers will be a requirement of Law.

This will prevent Cemetery scandals like those that occurred recently at Burr Oak Cemetery and Eden Memorial Park, a Service Corporation International Firm.

This legislation will bring significant needed reform to death care. The CBO Report brings the Legislation  HR3655 a step closer to full US House of Representative Passage

Here is a Snippet from the Full CBO report.

“Based on the information from the FTC CBO assumes would require five additional positions at a cost of 1 million per year to develop, enforce the new requirements,  train staff and develop education materials.”

View the full CBO Report here.

Funeral Industry| Funeral News|Funeral Blog by- Your Funeral Guy

FTC gives Approval For SCI Keystone Purchase|Final Condition|YourFuneralGuy

Service Corporation International Logo

The World’s Largest Funeral  Corporation Has been Given Final Approval for Purchase of the Fifth largest Funeral Group in North America by the FTC. The deal will go through  only after a 30-day Public comment period at the Federal Trade commission.

Service Corporation International (NYSE:SCI) has turned to it’s 1990’s acquisition strategy to increase it’s bottom line . With current unrealized preneed losses of 43.8 Million dollars. The Funeral Industry Giant has decided to take on  acquisitions to offset the recent history of Declining Revenue.

On one Level the whole deal, and I say this kindly, is quite corrupt. Financial Partners LLC, the company picking up the SCI divested properties is a newly formed company of  Former Keystone Executives. They are the ones who benefited financially from the purchase, and through the  new company same folks are picking up their same properties. The good old boy leading this circus is Jim Price.

Following a public comment period, the Federal Trade Commission has approved a final settlement order in the matter concerning Service Corporation International and Keystone North America, Inc. The final order settles charges that SCI’s acquisition of Keystone would have reduced competition in 16 funeral service and three cemetery markets in the United States, and requires that SCI divest properties in each market.

Pursuant to the settlement order, SCI is seeking FTC approval to sell a total of 23 funeral homes, cemeteries, and combination properties to resolve the FTC’s competition concerns raised by its acquisition of Keystone. The FTC is seeking public comment on SCI’s application

Under SCI’s request, the company would sell the 23 properties to Foundation Partners Group, LLC. The facilities are located in Arizona, California, Colorado, Georgia, Florida, Louisiana, Michigan, North Carolina, New York, South Carolina, Tennessee, Virginia, and Washington State. A

via www.ftc.gov

Funeral industry| Funeral News| Funeral Blog by Your Funeral Guy

Displaced Funeral Execs Maintain Control SCI Divested Property|Your Funeral Guy

Service Corporation International (the world’s largest funeral corporation) recently purchased the #5 Funeral Corporation . In an effort to maintain control of property required to be divested(sold as part of the deal and required by the FTC.) several Keystone execs(#5) will maintain control of the businesses sold.

Several Keystone Executives have formed a company and purchased the property. This shows the extent corporate leaders in the Funeral Industry go to maintain, control of your funeral dollar.

Snippet from the Memorial Business Journal-

It seems that the funeral home/cemetery acquisiton market has a new player. What was speculated for months is moving closer to fruition as three former top executives at Keystone North America have formed a new company and are moving forward with the acquisition of the properties the Federal Trade Commission last month ordered divested by Service Corporation International in order to complete the company’s acquisition of Keystone.

The company, Foundation Partners Group, will be headed by Steve Shaffer, who is president and chief executive officer. Shaffer was previously chief financial officer at Keystone. Jim Price, who co-founded Keystone in 1996 and was the company’s chief operating officer, is Foundation Partner’s executive vice president and chief operating officer; and Chris Thomley, who has served as Keystone’s chief accounting officer since 2005, becomes chief financial officer.

via memorialbusinessjournal.wordpress.com

Funeral industry| Funeral News by Your Funeral Guy

Service Corporation International cleared for Keystone Purchase|YourFuneralGuy

Dignity Memorial is an SCI logo

Service Corporation International(SCI) Has been cleared by the Federal Trade Commission (FTC) to purchase Keystone North America. Translation: The Worlds Largest Funeral Corporation #1 in North America has agreed to purchase the #5 Funeral Company in North America.

In an agreement with the FTC  Service Corporation International agreed to sell off  specified Keystone and SCI assets(22 Funeral Homes and 5 cemeteries).

This is not an indication that all is  well at SCI, Keystone or the Funeral Industry. It is an indication that all is not well. Service Corporation International is coming off one of it’s worst years in it’s history. It seems that it s reinstating it’s 1990″s strategy of acquiring properties  to  help the bottom line. In 2009 SCI had scandal after scandal.

Service Corporation International (NYSE: SCI), the largest provider of death care products and services in North America, announced today that it has received an early termination of the waiting period under the Hart-Scott-Rodino Antitrust Act from the U.S. Federal Trade Commission (the “FTC”) in connection with SCI’s tender offer (the “Offer”) for all of the issued and outstanding common shares, including those represented by income participating securities, (the “Keystone Shares”) in the capital of Keystone North America Inc. (“Keystone”) (TSX: KNA, KNA.UN). With that regulatory clearance, SCI, through its wholly owned subsidiary, SCI Alliance Acquisition Corporation, intends to take up all of the Keystone Shares tendered to the Offer as of the expiry time, provided that the 66 2/3% minimum tender condition and the other conditions of the Offer are met.

via www.foxbusiness.com

Funeral Industry|Funeral News| Funeral Blog by Your Funeral Guy

Burr Oak Cemetery Scandal:NFDA Asks FTC To Help-YourFuneralGuy

The National Funeral Directors Association has asked the Federal Trade Commission to bring cemeteries in under the Funeral Rule. This is the Result of the Burr Oak Cemetery Scandal.

The National Funeral Directors Association has asked for Cemetery Reform as a result of the Burr Oak Cemetery Scandal. Christine Pepper the CEO of The National Funeral Directors Association (NFDA) has sent a letter to the Federal Trade Commission asking the FTC to strengthen  the “Funeral Rule” to include all deathcare vendors which includes Cemeteries. This would be an excellent step in preventing future cemetery scandals like Burr Oak.

The Funeral Rule already applies to Funeral homes but needs to apply to Cemeteries as well. the Full NFDA Letter can be viewed here.

From the letter:

Any time the government extends regulations over sellers in an industry or profession, it has the effect of curtailing the opportunity for abuse. If a seller is not licensed, not inspected and not regulated by federal, state or local governments, it operates in a free-for-all world where there is no accountability for any transgression… NFDA, AARP and other organizations have documented the harm that consumers have experienced…

The FTC has refused to even investigate these complaints by arguing (without any support or evidence) that the practices are not pervasive throughout the industry. As a result, cemetery and crematory consumers continue to suffer from these reoccurring scandals.”

This is the a step forward for the NFDA and they should be commended for sending the letter to the FTC, Federal Trade Commission.

Funeral Industry|Funeral Blog by Your Funeral Guy.

Burr Oak Cemetery Scandal|Not a Federal Crime?-YourFuneralGuy

The Burr  Oak Cemetery Scandal  may not be Federal Crime. The Funeral Rule does not apply to cemeteries. The exception is Cemeteries with a Funeral Home on  Site.  A cemetery is covered under the Funeral Rule if they sell funeral goods and services. This appears not to apply to  Burr Oak Cemetery. The Cook county Sheriff would know that for sure.

In the Burr Oak Cemetery Scandal 300 graves were desecrated. Bones were piled up and discarded. there is an  ongoing accounting of 100,00 graves.

The people arrested at Burr Oak Cemetery  may  not have committed a Federal crime under the Funeral Rule. This does not mean that the Funeral Rule should not apply to Cemeteries.The Federal Trade

Congress Needs to Amend The Funeral Rule to cover Cemeteries

commission does issue a warning at there website.

According to ftc.gov.

The FTC’s Funeral Rule does not cover cemeteries and mausoleums unless they sell both funeral goods and funeral services, so be cautious in making your purchase to ensure that you receive all pertinent price and other information, and that you’re being dealt with fairly.

The Federal Trade Commission needs to extend the Funeral Rule to Cemeteries.

The Federal Trade Commission (FTC)needs to issue an Advisory Ruling extending the Funeral Rule to Cemeteries. This will go along way to preventing future Burr Oaks across the United States.

CONGRESS NEEDS TO AMEND THE FUNERAL RULE SO THE BURR OAK CEMETERY SCANDAL DOES NOT HAPPEN SOMEWHERE ELSE

Funeral Industry|Funeral Blog by Your Funeral Guy.

More information on this here.

Your Funeral Guy: 5 of Five Things You need to Know Before Shopping for a Funeral

Five of Five  things You need to know before shopping for a funeral to lower your funeral cost. One of the  main things to know is how to read a general price list. The Average cost of a funeral in 2008 is $8,000+ USD. In order to come in under the average cost of a funeral one needs to be able to read, understand and compare general price lists.

As mentioned in an earlier post the basic services fee or indeclinable  fee is the key price point and key comparison point in the general price list.

Funeral Homes are required by law to give you a General Price List any time you visit a funeral home. If you request the information by phone they are required to give you the information over the phone. Under the funeral rule they do not have to mail it to you. Many a Funeral Home will mail you a GPL or a General Price List out of courtesy. There are  Sixteen items required on the General Price list  under the Funeral Rule, Nine main ones are listed here.

1. general services fee
2. embalming cost,
3. cost of transferring your loved one to the funeral home,
4. price of a visitation
5. cost of funeral or memorial service
6. cost of graveside services
   
7. the cost of use of  funeral vans, hearse, cars and all other funeral vehicles
8. Other offered goods and services. (caskets, urns, video tributes, guest, memorial books & cards associated with the funeral, webcasting, flowers, etc.)
9. Funeral packages(funeral packages generally lower the price of some items and raise the price of others.)

In addition according to the Federal Trade Commission or  FTC  certain disclosures to aid in price shopping must be made.

• Anyone must select only the goods and services desired
• Consumers must be notified that Embalming is not required by law ( and only certain special cases)
• A “general  services fee” will be added to any items purchased
• “Alternative containers,” such as those made of cardboard, pine or other products  are available for direct cremation
• A Casket Price List is available for all who come into the funeral home
• A Vault price list must be available to the customer(public)

These requirements are for funeral homes not all merchants in the funeral industry.

In the future we will consider Five Ways to Shop for a Funeral:

1. Interpreting the GPL
2. Shopping by Phone
3. Shopping in Person
4. Shopping alternative sources
5. Shopping internet Sources.

Remember all funeral directors do not follow the funeral rule, the law.

This has been Five of Five  things You need to know before shopping for a funeral. The basics of the funeral process.2) The two contracts at every funeral. 3). The basics of the funeral rule. 4). The No Decline Basic Services Fee. 5. How to Read a General Price List (GPL)

Blog by Your Funeral Guy, author, funeral director

Your Funeral Guy: 3 funeral cost negotiation tools.

There are many funeral cost negotiation tools: Here are three funeral cost negotiation tools.

The 1st Funeral Cost Negotiation tool is right there on the General Price List. A GPL or general price list is required by the Funeral Rule and the Federal Trade Commission (FTC). If you inquire on prices a Funeral Home is required by a body of Congressional Law to supply a General Price List. Every time you find yourself at different funeral home it is a good idea to pick one up.

The 1st funeral cost negotiation tool is:You do not have to accept the prices on the General Price List of a specific package Many folks simply believe that the GPL is the final deal on the cost of a funeral. Under the Funeral Rule you can purchase only the services you want.

The General Price List is simply the start of the funeral negotiation process. It is only the starting point of negotiations!

The 2nd Funeral cost Negotiation tool is to use tried and true negotiation tactics as negotiation tactics as you would in buying a car or a house.
One simple tactic is to tell the funeral director you are going to pay(offer) less than his fees.

The 3rd Secret Funeral cost Negotiation tool s ask the funeral director to leave before you sign the final contract.
Just say you need to take some time to discuss it with your family! You have the right to take some time on this big decision.

Your Funeral Guy, R Brian Burkhardt, Funeral Director, Author, Blogger State of Illinois

Rest in Peace: Insider’s Tips to the Low Cost Less Stress Funeral by R Brian Burkhardt and Matt Bacak. #1 International Best Selling Author Jason Oman also gave thumbs up to this book.

Your Funeral Guy: Discover The Hidden Funeral Cost Strategy

The hidden funeral cost strategy is right there on the General Price List. A GPL or general price list is required by the Funeral Rule and the Federal Trade Commission (FTC). If you inquire on prices a Funeral Home is required by a body of Congressional Law to supply a General Price List. Every time you got to a different funeral home it is a good idea to pick one up.

The hidden funeral cost strategy is:

You do not have to accept the prices on the General Price List of a specific situation. Many folks simply believe that the GPL is the final deal on the cost of a funeral.

It is simply the start of the funeral negotiation process. It is only the starting point of negotiations!

Your Funeral Guy, R Brian Burkhardt, Funeral Director, Author, Blogger State of Illinois

More information on the basics of Funeral Cost Negotiations can be found in:

1.	Rest in Peace: Insider’s Tips to the Low Cost Less Stress Funeral by R Brian Burkhardt and Matt Bacak