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Topic starter
08/10/2013 4:08 pm
I've received a copy of another firms circular to creditors advising what their level of fees are and was that blown away by it that I wanted to share it on the forum.
At the outset of the Trust Deed, the Trustee estimated their fee to be in the region of £9,000 for the three year period. To give balance to this, there are a couple of properties in the Trust Deed that required work to be carried out.
At present, their fees drawn to date are in the region of £19,000. The estimated that their fee will be in the region of £27,000 by the end of the Trust Deed.
Total overall costs of the case are projected to stand at roughly £45,000. The dividend to creditors was in the region of 90p in the £ at the outset and now it's forecast at less than 10p in the £.
This is the highest fee that I've came across in a Trust Deed case in all my 10+ years of working within Insolvency.
It's something that you want to ask an advisor when considering a Trust Deed. I had another case and a firm said they needed to run the case for 4 years due to their fees and for creditors to accept it whereas we could administer the Trust Deed for 3 years with the client paying the same payment per month. The proposed changes due in November regarding fees may help to tidy this up.
I wouldn't let this put anyone off from considering a Trust Deed as fees are normally nowhere near this level.
David is not currently posting in the Trust-Deed.co.uk forum
08/10/2013 4:32 pm
Hi David.
That's extraordinary. When you read what a few greedy folks are up to its no surprise that the Scottish Government feels the need to act on fees.
An article on this very subject was recently added to the site and might be worth a read by those who take an interest:
(Link Removed 2020).
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
08/10/2013 4:48 pm
Hi David
Even at an exorbitant charge out rate @ Philidelphia lawyers rates, that would equate to someone mega senior working on the case for 108 hours!
Go on, name names!
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
08/10/2013 5:47 pm
Based on the level of fee's charged for my Trustee for [B)] the last SEVEN years . I could take a guess , would they happen to have the same initals as a brand of crisps and nuts ??.
08/10/2013 6:02 pm
Hmmmm...
Not sure about naming names here.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
08/10/2013 8:31 pm
Don't worry TDA, I'll not be naming names, just wanted to highlight what I had came across.
We were all blown away in the office when we looked at the paperwork. Just goes to show what some firms are able to charge as a fee.
David is not currently posting in the Trust-Deed.co.uk forum
08/10/2013 10:29 pm
Well I think your right it is important to get praps a set fee, I know many people who take out Trust deeds never think they are ever going to be in a position to pay it off in full, and they are ultimately not going to pay the fee, but what if they had a sudden windfall like me, and their trust deed finished repaid back in one year or 6 months, it's a different ball game when it's coming out of your own pockets, as I found to my cost, vultures come to mind. I look forward to when these fees are somewhat capped, or regulated in some way.
