DOZENS of people who had paid into insurance plans for years to cover their funeral only to have them withdrawn without compensation rallied at Holyrood today.

The plans, underwritten by Maiden Life, were sold to credit union account holders through broker CMutual which held a monopoly for such products through trade body the Association of Credit Unions Limited.

Last month, account holders were informed that cover would end on November 30, leaving thousands of working-class people on low incomes without the means to cover their own burial.

Addressing the rally, NHS Credit Union’s Robert Rae said: “CMutual knew exactly what this would mean.

“They knew that people on low incomes cannot just find thousands of pounds for a funeral. They knew that cancelling this plan would push families into debt, distress and fear, but they did it anyway.”

He added: “Where is the Financial Conduct Authority (FCA)? Where is basic oversight? Where is any protection for vulnerable people?”

Socialist MSP Richard Leonard, who would later table a question to business minister Richard Lochhead on the matter, added: “Thousands of people, some very elderly, have been abandoned and left in funeral poverty.  

“Meanwhile the greedy directors of CMutual have looted more than £3 millions in dividends over the last five years.

“The Scottish government should be pressing the FCA to take action.

“It’s hard to think of a more callous act than to take away people’s funeral savings in this way.”

Addressing the matter in Holyrood, Mr Lochhead told MSPs: “We will continue to put pressure on the FCA,” adding: “We will, of course, do all we can to make sure the policyholders are not left in the lurch.”