Notifications
Clear all
Topic starter
03/05/2013 9:41 am
All IP firms have been issued with a letter from one of the larger creditor representatives in relation to the proposed changed.
The key points appear to relate to 'certain' IP firms regularly concluding a Trust Deed where their fees are significantly higher than those proposed at the start with no explanation as to why the increase has occurred. As a result the creditors regularly receive no dividend.
Another key issue appears to be where Trust Deeds are extended due to one reason or another ie missed payments etc and the resulting fees outweigh the actual sums being ingathered.
Reading between the lines, it appears there may be some firms in the firing line where the above is a regular occurrence. Irrespective of change in legislation, the creditor representatives will control how the trust deed process develops.
Interesting times ahead!!!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
03/05/2013 1:26 pm
That is interesting Mark.
You can't blame creditors for protecting their own interests if a small number of IP firms are milking the system to their expense.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
03/05/2013 2:17 pm
Just a question, what is the average fees that IP firms charge? Does it depend on the amount of the debt?
Topic starter
03/05/2013 2:33 pm
Hi Sam
It has no relation to debt figures.
I'm not 100% but I think £3k -£4.5k is average, though I'm helping in a case where the Trustee's fees ( 7 years later) is @ £20k+. In 7 years he has not agreed claims, paid an interim dividend & is refusing to conclude the Trust Deed despite having the written agreement from all creditors to do so.
Sometimes in this job, if I had a full head of hair, I'd pull it out in frustration!!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
03/05/2013 2:37 pm
Made me laugh there Mark!
The fees from my Trustee was very reasonable then, that's good to know. Thanks for your answer.
Topic starter
03/05/2013 2:43 pm
No probs, always glad to help.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
03/05/2013 3:21 pm
I think It was certainly a letter designed to highlight that they are paying a lot more attention to Trust Deed proposals, Trustee's fees and the dividend to creditors at the conclusion of a Trust Deed.
Whether this will stop the small minority of firms in what they are doing who knows. As you say Mark, the creditors will drive the Trust Deed process and what is an acceptable fee and dividend as is already the case but with far more scrutiny going forward.
A £20+ plus fee for a 7 year Trust Deed... That's phenomenal!
David is not currently posting in the Trust-Deed.co.uk forum
Topic starter
03/05/2013 3:52 pm
Hi David
I've had sight of the full file and in 26+ years its possibly the worst I've ever witnessed and I've seen some horror stuff in my time.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
03/05/2013 5:00 pm
How about £ 9,500 for a 3 year TD that took 5 years to complete....
03/05/2013 5:04 pm
I've a feeling there could be a few horror fees pop up on this thread.
Here's one of mine...
Couple "quoted" five year trust deeds. The fee would be £7500 each. Both of their circumstances entirely straightforward.
Ended up going ahead with one of the firms on here after we spoke with them. Huge reduction in fees meant that could each easily enter three years trust deeds.
It's not just creditors that can lose out as a result of excessive fees.
To keep it in perspective though, most firms seem to go about this responsibly and with the interests of all parties in mind.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
04/05/2013 8:43 am
Bet I can guess the firm involved. I'll give you 4 letters as a clue.
I can fully understand the creditors thinking on this. I've had sight of quite a few cases from a heavily advertised firm where the calculation of fees is based on getting the dividend figure to 10.1% to get it accepted. Usually 2 identical cases, same amount of creditors, but the higher earner pays £60 p/m less than the lower earner while the lower earners fee is £1800 more than the other one. It calculates like a mathematical puzzle!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
04/05/2013 10:35 am
I'll take four consonants please Mark!
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
04/05/2013 7:31 pm
I think I know who you mean - I am with them[:(] I so wish I had found this forum before I went with them
04/05/2013 9:05 pm
Gimme a K!
Trust deed completed Jan 2012,Trustee discharge Nov 2012.
A new dawn.
04/05/2013 9:35 pm
Can I have a P please Bob sorry Mark 🙂
Page 1 / 2
Next
