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Supervisor Fee Dispute

Hi there, 
I was hoping to get some re-assurance in terms of the supervisor fee which I am being charged. Numbers for illustrative purposes only (assume 100p in the £)
Total payable = £10,000 
Amount owed to creditors = £7,500
Disbursements = £1,000
Supervisor fees = £1,500
Is it normal practice for my fee to be based on the amount payable, rather than (Amount Owed + Disbursements) * 15% = £1,275.
I am completely shocked that my practitioner would include the supervisor fees within the number which determines the supervisor fees! As such, my effective supervisor fee is 17.6% rather than the agreed 15%.
Any advice would be greatly appreciated

Comments

  • fatbelly
    fatbelly Posts: 22,139 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    Hi

    The difference is only £225 over 60 months. In the grand scheme those fees seem reasonable but, like you I would have expected the percentage agreed to have applied to the total amount owed. Query it?
  • fatbelly said:
    Hi

    The difference is only £225 over 60 months. In the grand scheme those fees seem reasonable but, like you I would have expected the percentage agreed to have applied to the total amount owed. Query it?
    Hi, thanks for the response. These numbers are illustrative, I am more concerned by the principle. 
    I have queried it and the person has come back and said:
    "The amount a debtor pays and the amount we charge in fees is not connected with the level of debt" - this statement worries me - my level of debt , and therefore my level of realisations, are surely directly linked to the 15% supervisor fee on realisations
    The fee they have calculated amounts to 17.6% of what I am paying into the IVA as they are effectively cooking the supervisor fee into the number which determines the supervisor fee! This doesn't seem to meet the key principles transparency and fairness as outlined in the Statement of Insolvency Practice.
  • sourcrates
    sourcrates Posts: 30,611 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    It should not really matter as the fee`s come out of your monthly payment, so it dosen`t make any difference to you or your arrangement who gets what share of the money, the pot is still shared out between creditors and expences, so if anything, its the creditors that lose out, not you.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • But my point is that my total payable value would be less if the 15% was charged on the amount owed rather than the amount payable. Thereby leading to reduced monthly payments.
  • Also, my creditors won't be losing out (aside from the obvious interest which has been paused!) as they will be getting all the money that they owed, assuming I pay 100p in the £
  • sourcrates
    sourcrates Posts: 30,611 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Dxc249 said:
    Also, my creditors won't be losing out (aside from the obvious interest which has been paused!) as they will be getting all the money that they owed, assuming I pay 100p in the £

    You must decide what your priorities are, to clear your debt or argue about percentages.
    Personally I would not be bothered about paying 2.5% more to my IP.
    It also strikes me as unusual for a client to repay 100p in the £, normally its much less.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Dxc249 said:
    Also, my creditors won't be losing out (aside from the obvious interest which has been paused!) as they will be getting all the money that they owed, assuming I pay 100p in the £

    You must decide what your priorities are, to clear your debt or argue about percentages.
    Personally I would not be bothered about paying 2.5% more to my IP.
    It also strikes me as unusual for a client to repay 100p in the £, normally its much less.
    In hindsight, I was desperate and rushed into the IVA. I was cold called by a sales person at a very low ebb in my life and it sounded right for me at the time!

    Fortunately I've got myself back on track mentally and financially so will be able to finish the IVA earlier than 5 years assuming no bumps in the road - which is a broad assumption these days!

    Thank you for the advice. Very much appreciated. 

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