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Post by overthehill on Mar 28, 2020 15:48:14 GMT
A bit more but not perfect detail about how we are getting fleeced by the various receivers. Receiver's fee, legal costs, auctioneers costs all rolled up into one figure. Read as the 2nd/3rd being fixed and reasonable costs and the 1st as how much can we charge without raising any red flags for the FCA or ombudsman.
IIRC receiver fees are capped, as opposed to administrators fees which arent www.insolvencydirect.bis.gov.uk/technicalmanual/Ch49-60/Chapter%2056-2/Part%204/Part%204.htm56.2.116 LPA receiver’s remuneration The LPA receiver is entitled to receive commission from the monies collected by him/her. The rate of commission may be specified in the appointment document and should not exceed 5 per cent on the gross amount of all monies received. If no rate has been specified the rate will be 5 per cent on the gross amount. The rate of commission includes the LPA receiver’s remuneration and all costs, charges and expenses incurred by him/her. Where the LPA receiver believes the rate of commission is too low he/she may apply to the court for an increase. The court may make any order in respect of the rate of commission it thinks fit [Note 44].
There is a well known property in Coventry if you are in it which blows this statement, guideline, law whatever it is out of the water. The receivers tried to charge 125k on receipts of 300k. The administrators negotiated a 33k discount. Even the official fee figure is still 10% and the rest is 'expenses'. Make your own mind up who decides the actual rules. Monies recovered well over the original loan but we will still have a capital loss.
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adrian77
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Post by adrian77 on Mar 28, 2020 16:27:59 GMT
Thanks a lot - not blaming the FSAG but £28K seems a fortune to me for slapping the property in an auction and doing a bit of paperwork. Also be interesting to see where this 5% FS fee finally ends up
So total recovery expenses is £330-£278.093K = £51.91K/£330K which according to my maths = 16% in round figures - I wonder just how many loans are going to provide anywhere near 100% recovery if this is a typical...
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iRobot
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Post by iRobot on Mar 28, 2020 17:55:49 GMT
Thanks a lot - not blaming the FSAG but £28K seems a fortune to me for slapping the property in an auction and doing a bit of paperwork. Also be interesting to see where this 5% FS fee finally ends up So total recovery expenses is £330-£278.093K = £51.91K/£330K which according to my maths = 16% in round figures - I wonder just how many loans are going to provide anywhere near 100% recovery if this is a typical... Got a feeling this is going to be a dumb question, but what do the FSAG have to do with it?
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adrian77
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Post by adrian77 on Mar 30, 2020 10:29:50 GMT
can somebody who knows this business possibly comment - it seems very high to me but what do I know...
This nightmare just gets worse
I thank you.
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Post by brendondoubleu on Mar 31, 2020 6:51:38 GMT
How can a property which is 10 miles out of Bristol be described as Bristol? Bristol and the wider area. All have BS postcodes. There are some places further out classed as Bristol. Wondering in the past if near Bristol was the more common thing.
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