For years, with demand outstripping supply, the market has seen prices of private columbaria soaring into tens or hundreds of thousands, and the emergence of a large number of unauthorised columbaria. The Private Columbaria Ordinance which came into effect in June this year, has prohibited the sales or leasing of new niches by private columbaria until they have obtained a licence from the Government. During the transition, the interment services in columbaria may be affected.
Complaints lodged with the Consumer Council have indicated that consumers who had bought niches from private columbaria were denied service to inter cremains of the deceased there. Furthermore, the transactions involved were often sketchy and slipshod evidenced by sloppy handwritten notes that could hardly protect the rights of the consumers.
Although the Ordinance is currently in effect, the licensing board will not open to licence applications until December 30 this year. In the interim, consumers are cautioned not to take any claim lightly concerning sales of columbarium niches during this grace period. Even if the need arises now for interment of cremains, consumers are advised to be patient and not to rush into purchase to avoid monetary loss due to the columbarium’s failure to obtain an operation licence. To enhance consumer protection, the Ordinance also stipulates that a written sales agreement must be drawn up between the operator and the consumer in compliance with the Ordinance requirements. Otherwise consumers have the right to cancel the agreement and demand a refund.
Columbarium operators are also urged to keep their customers always informed in the progress of their licence application, in order to relieve consumer anxiety. In the event they fail in their licence applications, they should make suitable arrangements in consultation with the consumers in respect of refund or compensation.
Case 1: Private columbarium not in service
In 2009, the complainant purchased, for a sum of $45,800, a columbarium niche at a monastery which he later learned was in fact not authorized by the Government. The monastery claimed that they had never authorized any third party to sell its niches and the columbarium was not open to the public until further notice. Upon enquiry, he was informed that the monastery had ceased to provide interment service and that he should contact Company X from which he purchased the niche. When he failed to receive any concrete reply from Company X, he sought the assistance of the Consumer Council in demanding full refund.
The Council approached the monastery and the company for conciliation, but both were unable to affirm when the service could be resumed or how the complaint could be resolved. The complainant was provided with the information about Consumer Legal Action Fund from which he might seek legal assistance.
Case 2: Shoddy contract with no personal data verification
The complainant’s mother purchased from Monastery B a columbarium niche at $8,600 some 20 years ago. Upon her death earlier this year, the complainant took with him the sales memo to the monastery to make the interment arrangement. But the monastery refused to let him have the urn space, on the grounds that his mother’s name on the sales memo different from that on her identity card. Upon legal advice, he took the District Office swearing-in service to have the names on both documents certified as referring to the same person. However, the monastery still refused to accept, and the complainant turned to the Council for assistance.
Upon the Council’s conciliation, the monastery still declined to explain what the complainant should do to verify his mother’s identity, or to obtain possession of the urn space. The Council suggested the complainant to seek legal advice on how to proceed with the matter.
Sales and purchase of niches are transactions of a private contractual nature. Consumers should carefully read and understand the terms and conditions to make sure they comply with the requirements of the new Ordinance. If in doubt, seek legal advice to protect their rights and interests, and to guard against loss.
Presently in need of columbarium service
•Under the Ordinance, only licensed private columbaria could sell or lease niches. Whether a columbarium is on List A or List B, the outcome of its licence application remains unknown. Consumers therefore should guard against sales promotion or claims contrary to the law;
•Consider the use of the Garden of Remembrance or the free ferry service for scattering ashes at sea run by the Food, Environment and Hygiene Department.
Having bought private columbarium in advance
•If consumers have already bought a columbarium niche before the enactment of the new legislation and are currently on instalment payment, they should enquire with the operator in details as to its plan for applying the licence, and whether or not the columbarium could meet the relevant regulatory requirements. Consumers should also ask the operator to explain how it ensure that their interests are protected, for instance, the arrangements regarding relocation of cremains, refund and compensation in the event of its failure to obtain a licence, closing down or being prohibited from operating.
Buying private columbarium for future need
•For consumers contemplating to buy a columbarium niche, the first and foremost consideration is that the columbarium operates with a licence. Consumers should verify that information with the Private Columbaria Affairs Office;
•Consumers should clearly keep tabs on the various fees and charges including the nature of the levy and the services. Carefully read the terms of the agreement including the period of use of the niche, ownership rights and refund mechanism, etc;
As regards sale of private columbarium niche through agency, consumers should realise the relationship between the company and the columbarium so as to ascertain to whom they should turn to for help when something goes wrong.