The following was faxed to Maridel Freshwater in the regional office of the Federal Trade Commission by Pierson Ralph, Executive Director, Memorial Society of North Texas. Several editorial comments have been added in italics. Simplicity Plan of Texas, a subsidiary of Stewart Enterprises, Inc., sells preneed cemetery space and funeral plans for Stewart funeral homes, including Restland, Laurel Land, Anderson Clayton, and Bluebonnet Hills, among others.
Simplicity encourages purchasers who buy both items to combine payments on one account.
There are, however, potentially adverse consequences to such combination if the purchaser defaults or chooses to cancel a contract. Simplicity does not warn purchasers of such adverse consequences. The other one-half is deposited in a trust account for the purchaser. Once the ten percent has been retained, all further payments are deposited in the trust. Payments deposited to the trust, but not earnings thereon, are refundable to the purchaser in the case of cancellation or default on the payments.