We are proud to have helped over 10,000 people with their financial difficulties. We are committed to providing the highest standard of customer service. We are very happy with the number of positive reviews we receive from clients but we are always looking to improve. We take all client complaints very seriously and act promptly to respond to complaints, rectify the situation if possible and make the improvements necessary to our working practice. If you would like to make a complaint visit our complaints section here.
WHAT IS THE FEE FOR YOUR DEBT SOLUTION?
If you enter into a debt solution with Carrington Dean, there may be fees involved.
PROTECTED TRUST DEED
In a Trust Deed, fee’s are paid from your monthly contribution, so there will be no unexpected bills at the end.
Fee’s are made up of –
- A fixed fee
- A percentage of realisations
- Expenses and disbursements
The fixed fee covers the cost of arranging your Trust Deed and includes proposing it to your creditors. It will normally not exceed £2,500, and is paid from your monthly contributions before any payments are made to your creditors.
PERCENTAGE FEE OF REALISATIONS
The realisation fee covers the ongoing running of your Trust Deed. This fee is a percentage of realisations; typically 20% of any funds that the Trustee ingathers such as –
- Your monthly contributions
- Assets (e.g equity in your property)
- Windfalls (e.g a lottery win, an inheritance)
EXPENSES & DISBURSEMENTS
Your Trustee can also claim back certain expenses that have been incurred during the term of your Trust Deed. This information will always be set out in the Trust Deed proposal that you sign.
For example, an individual who owes £28,232 contacts us and a Trust Deed is recommended as the best solution
|Monthly contribution (£180 x 48 months)||£8,640|
|% Fee of realisations||£1,828|
|Trustee’s expenses & disbursements||£1,631|
|Total repaid by individual (inclusive of fee’s above)||£9,140|
|Total unsecured debt written off at completion||£25,051 (88%)|
Expenses and Disbursements shown are inclusive of VAT where applicable.
DEBT ARRANGEMENT SCHEME
If you enter into a Debt Arrangement Scheme (DAS) an application is made for a Debt Payment Programme (DPP) through us, you will pay an initial fee of £295 and an ongoing management fee which is 15% of your monthly payment, subject to a minimum of £12 and a maximum of £80.
The initial fee will be used to cover the work that’s involved in setting up your Debt Payment Programme.
Your monthly fees pay for the work that’s involved maintaining your Debt Payment Programme, including dealing with any issues or problems that may arise.
We’ll carry out regular reviews of your circumstances to help ensure your Debt Payment Programme remains the best solution for repaying your debts. If at any point we believe it isn’t (if your circumstances change significantly, for example), we can help you to find a more appropriate debt solution for your needs.
If your circumstances do change but you can still afford to make a reasonable monthly payment, we may be able to arrange with your creditors for your monthly payments to be reduced accordingly.
SEQUESTRATION (SCOTTISH BANKRUPTCY)
We do not charge an initial fee to assist with the completion of your sequestration application. However, there is an application fee which must be paid to the Accountant in Bankruptcy. The application fee is £200 for sequestration or £90 for MAP and there are no exemptions to this fee.
|For example, an individual who owes £18,670 contacts us and Sequestration is recommended as the best solution|
|Monthly contribution (£140 x 48 months)||£6,720|
|Accountant in Bankruptcy’s Fee||£700|
|Total repaid by individual (inclusive of fee’s above)||£6,720|
|Total unsecured debt written off at completion||£11,950 (64%)|
Trustee’s Fees are shown exclusive of VAT.
The Trustee’s fees won’t affect how much you pay each month, or how much you pay in total over the course of your Sequestration, because you’ll be expected to pay only as much as you can afford throughout the period of your sequestration.
INDIVIDUAL VOLUNTARY ARRANGEMENT (IVA)
We do not charge any upfront fees in our IVAs. Payments are only made if and when your IVA is agreed by your creditors. If for any reason whatsoever your IVA is not accepted by your creditors you will have nothing to pay. We will also help to find you an appropriate alternative debt solution.
Once your IVA has been accepted, the fees that you pay will be made up of –
- A nominee’s fee
- A supervisor’s fee
- Expenses and disbursements
This is a fixed fee that will cover the work that goes into setting up your IVA including –
- Creating your IVA proposal – this sets out the proposed terms of the IVA; how much you would pay, how much each creditors would receive etc.
- Setting up the creditors meeting – this is when your creditors will formally approve your IVA proposal, reject it or request changes to it.
- Assessing any suggested changes – if any creditors have requested changes to your IVA proposal, your IP will advise you on whether you should accept those changes or consider a different approach to your debt problems.
The nominee’s fee is typically made from the first 3 – 5 monthly contributions before any payments are made to your creditors.
The Supervisor’s fees will cover the ongoing supervision and maintenance of your IVA for its duration. A typical IVA lasts for five years.
This fee covers the costs of –
- Relationship Managers who will deal with any day-to-day issues that arise, ensuring your IVA runs smoothly.
- Your Insolvency Practitioner (IP) who will carry out regular reviews of your IVA and address any more serious issues that come up – if, for instance, your financial situation worsens, and you need your IP to arrange an IVA variation (a legally binding change to the terms of your IVA, designed to help you bring the IVA to a successful conclusion).
Again, these fees are set and agreed by your creditors and come out of your monthly payments. You will not have to pay any more than what you can afford. This fee is generally 15% of the overall payments and is based on your completion of the IVA.
EXPENSES & DISBURSEMENTS
Your IP can also claim back certain expenses that have been incurred during the term of your IVA. This information will always be set out in the IVA proposal that you sign and must be approved by your creditors.
|For example, an individual who owes £30,000 contacts us and an IVA is recommended as the best solution|
|Monthly contribution (£230 x 60 months)||£13,800|
|Supervisor’s expenses & disbursements||£65|
|Total repaid by individual (inclusive of fee’s above)||£13,800|
|Total unsecured debt written off at completion||£19,313 (65%)|