GT Disbursement help

ponderer

Does anyone know what % of an IVA with GT goes on disbursements? If not does anyone know what the industry std. Is? I have asked them but not been given the amounts.
Thanks

foxy-stoat

Do you really need to know?

I have a statement somewhere when my IVA completed years ago, seem to remember scanning through it but didnt take much notice as around 70% of my debt was wiped off so I didnt care.

phil2580

I would say it's very pertinent to look into these costs...they are paid from your contributions after all, and many IVA providers just put a generic "disbursements" category on the proposal, rather than properly breaking it down.

While I'm making no accusations, it is pretty well known within the industry that there are kickbacks left, right and centre going on...it's the only way that some IVA providers can afford to pay 110-125% of the Nominee Fee for a referral.

Obvious examples are software charges, where a "shadow company" is set up which pays the software license at, say, £120 per case, but invoices the IP for £240 per case. Bingo, nice little £120 profit. It just so happens that said "shadow company" resides in the same office as the IP and it's rent costs the same as it's income....nice little kickback to the IP.

Same goes for PPI Claims, 40% + VAT for CMC Fee, 25% of that gets kicked back to the IP.

All of this gets nicely hidden under "royalties" or other obscure headings in the company accounts, and the regulators know nothing about it because they have no remit to investigate the company accounts during their inspection visits.

My advice, if they won't give you a full breakdown of expected disbursements, then walk away. A smaller provider will give you better service anyway.