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Row erupts over IVA fee capping 22 February 2011

Bev Budsworth, managing director of The Debt Advisor, believes TDX’s TIX platform, which services accounts subject to an IVA or protected trust deed, should stop imposing fee caps on IPs who “try valiantly” to administer IVAs.

Budsworth highlighted a creditors meeting in which her company’s nominees fee was capped at £1,000 including VAT, notwithstanding that VAT has increased to 20 per cent.

She added: “To make matters worse we are no longer allowed to recover category two expenses which in this case was £33 for the nominee period and £96 for the supervisory period.

“For me the fee capping by TIX has gone to far.”

She added that on the same case, Grant Thornton had allowed nominees fees of £2,000 excluding VAT and no caps on disbursements.

In a response to an email from Budsworth, TDX Group said that under the TIX compliant fee structure, its clients do not authorise TIX to ‘cap’ fees.

The company added that on cases where the debtor’s contribution is proposed at a level significantly below the industry average they do instruct TIX to apply a discretionary minimum nominee fee of £1,000 inclusive of VAT to lift fees.

TDX said this was a mechanism that is only required for a minority of cases.

But Budsworth has proposed to present a petition on behalf of IPs to force change through.

She added: “If Tunisia, Egypt and hopefully Libya can force through change surely IP’s can petition for fair treatment on fees. We can demonstrate that other organisations voting for creditors take a far more pragmatic and reasonable stance.”

 

 

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