A question about fees and how they are calculated.

[clivemrthn]

A question about fees and how they are calculated.

I keep seeing expert posts on here saying that fees are usually about 15%, I think this is a little mis leading as we are with Grant Thornton and they are charging 25% of all realisations.

We had a large debt so we were due to pay fees of over £13,000. I thought that this was calculated on the total debt, However looking at some paperwork when we put in a full and final settlement (it was refused) I noticed that the 25% is applied to all of the monies paid into the IVA even though this is more than the original debt. Is this right?.

[Foggy]

Fees are agreed between the IP and creditors and are detailed in your Chairman's Report.

GT, however, recently has a series of mass variations, on the face of it to do with dealing with PPI. However, they slipped in the fee change to 25% and, it seems, the creditors agreed!

Did you get and sign one of their "Spotty letters" (so called due to the decorated envelope they were in) ? Or, was this fee agreed at the start ?

And, yes, it applies to all the monies paid in.

[clivemrthn]

Thanks
We were originally with Blair Endersby and were transferred to GT.So yes we did agree the variation, in hindsight we didnt give the hike in fees from 15% to 25% much thought. Still, as you say this was agreed by the creditors.

[Foggy]

Yes. In my opinion this was a clever subterfuge to slip in variations under the radar ... but, as I say, that is only my opinion.

It is actually a commonly used ploy which has beleaguered many a Government and Sovereign Court over the centuries.

[Adam Davies]

Hi

I am surprised that creditors agreed the increased fees, however 15% is the normal charge for anyone entering into a new IVA

As already stated fees are agreed by creditors so don't be too concerned about them as it should not affect the monthly amount you Pay into the IVA

Regards