Ms Hudson said she invested in a funeral plan with Safe Hands in 2019 after seeing it advertised on television.
“That was my savings. I gave it in good faith. I actually thought what it said on the tin, it is in safe hands,” she said.
Since July 2022, pre-paid funeral providers have required approval to operate from the Financial Conduct Authority (FCA).
Safe Hands was one of dozens of companies operating in the previously unregulated sector, and collapsed four months before the measures came in.
The Serious Fraud Office (SFO) opened its investigation, which is ongoing, into Safe Hands in October 2023.
The court appointed administrator for Safe Hands initially said plan holders could receive repayments of between 8.5p and 12.5p for every pound they lost.
FRP Advisory told the BBC payments would be given out by the end of June.
But after a six-month delay, the amount that has been repaid to victims of the funeral firm collapse is much less – about 4p for every pound.
A FRP spokesperson said: “We are working hard to recover more funds and once they are received we will be able to pay another distribution.
“We aim to always return as much as possible as quickly as possible and in as fewer disbursements as possible.”