About Our Fees and Duties

• Debt Management Fees
• IVA fees
• Trust Deed fees (only applies to Scottish residents)

Debt Management Fees

The fees on our Debt Management Plan (DMP) fall into two categories;

• Initial Fee - this is calculated at 45% of your monthly payment and is deducted from the first three months payments into your Debt Management Plan. This money is not paid to your creditors. Our initial fees will be deducted from your monthly contribution before a distribution is made to your creditors.
• Management Fee - this is deducted from your monthly contribution before a distribution is made to your creditors. This is calculated at 15% of your monthly payment where a minimum fee of £25.00 will be charged. Your monthly Management Fee will start from your first month from entering into your DMP with RSM Tenon Debt Solutions.
• Total Fees - For the first three months is 60%

Many Debt Management companies delay making payments to creditors while they collect their fees. This means it can be several weeks, or even months, before creditors receive any payment. This can put you under considerable pressure from your creditors and actually make your situation much worse.

It is our priority at RSM Tenon Debt Solutions to make sure that your creditors receive payment from you at a level you can afford from the first month you make payments to us. We do this by spreading our initial fees over the first three months of your DMP. This reduces creditor pressure from the first month.

What our fees cover

The "Initial Fee" covers the costs of setting up your Debt Management Plan, this includes;

• Preparation and completion of your Draft Financial Statement
• Carrying out a review of your case once you have returned the information we have requested
• Preparation of your Financial Statement and payment schedule to your creditors
• Negotiation of reduced payments with your creditors including agreeing suspension of interest and charges, where possible
• Distribution of token payments to your creditors from your very first payment into your DMP to reduce creditor pressure
• Appointment of a Personal Case Handler to ensure someone is available at the end of the phone to answer any questions you may have

We give you a fourteen day ‘cooling off’ period so that you have enough time to fully consider your decision. If you decide that you do not want to proceed within fourteen calendar days from the day we receive your first payment, we will refund any payments you have made.

Your “Initial Fee” is not refundable outside of our 14 day cooling off period.

The monthly “Management Fee” covers the ongoing maintenance of your DMP, this includes;

• Distribution of your monthly payment to your creditors
• Dealing with creditor correspondence and calls on your behalf
• Providing you with a monthly statement detailing all payments to creditors after deduction of our fees
• Completion of 6 monthly reviews with your creditors
• Completion of an annual review of your case to ensure DMP is still appropriate in your circumstances
• Allocation of your Personal Case Handler who is available to answer any queries you may have regarding your DMP and finances

If at any time you feel that you are struggling to afford your agreed monthly payment, we can review this with you, and where necessary renegotiate with your creditors on your behalf. We can renegotiate with your creditors - they may agree to accept smaller payments if it looks like the best way of bringing your debt management plan to a successful conclusion.

IVA Fees

An IVA is a legally binding agreement with your unsecured creditors and by law requires an Insolvency Practitioner (“IP”).

The IP assigned to your case will be a qualified professional, experienced to handle insolvency cases.

In an IVA, the Insolvency Practitioner assigned to your case will act as both Nominee and Supervisor, and draw a fee for acting as both Nominee and Supervisor. The payment of the Nominee's and Supervisor’s fees and expenses will be detailed in the IVA proposal. These fees may be calculated as a percentage of contributions paid by you, or as a fixed fee or on a time cost basis. It will be for the creditors to decide the basis and amount of such fees.

Fees will be payable from the monthly contributions that you make.

Fees are not paid in addition to the contributions you make. In effect creditors take the burden of the fees as they come from the contributions you make towards your debts.

Nominee's fee

This is a fixed fee to cover the set up costs of the IVA and assistance with the preparation of the proposals:

• Preparation of IVA proposal. (More than or equal to 75% of those who vote for the IVA go through to be approved).
• Convening and holding the creditors meeting

Supervisor's fees

The Supervisor's fees will cover the ongoing supervision and maintenance of your IVA for the agreed term (usually 5 years). Your IP along with suitably qualified members of their staff will undertake some or all of the following;

• Regular reviews of your IVA
• Preparing and sending statutory reports to your unsecured creditors
• Agreeing the level of your unsecured debts
• Making payments (paying dividends) to your creditors in accordance with the terms of your agreed IVA proposal
• Liaising with your unsecured creditors
• Liaising with you whenever you have any questions
• Re-assessing your circumstances if they change during the term of the IVA, and reporting this to creditors where necessary
• Annually assessing your income and expenditure
• Generally ensuring that the IVA runs satisfactorily for you and for your unsecured creditors
• After the Nominee's fee has been paid, a percentage of each monthly payment will be taken as supervisor's fees, as detailed in your IVA proposal.

Note: It is essential that you keep up with your agreed monthly payments into your IVA. If at any point during the term of your IVA you feel you can no longer afford the payments agreed, you must contact your IP or their staff to discuss.

Contacting us to discuss any payment difficulties you are experiencing or changes in circumstances is essential, IVAs do provide an element of flexibility, you may be allowed to payment break if you come up against unexpected costs (such as essential home repairs), or the IP may be able to request that creditors agree to amended terms that suit your change of circumstances.

If you fail to keep up with your agreed payments and fail to contact your IP to discuss, your IVA may fail, leaving you liable for payment of your unsecured debts at their original contractual payment level and in some cases liable for the payment of the IVA fees in addition.

Trust Deed Fees (Scottish Residents only)

Trust Deed fees and outlays (Scottish Residents only)

All fees and outlays incurred during the administration of your Trust Deed are met from the realisations made from your income contributions and/or assets. You do not have to pay additional fees or charges.

Trustee’s fees:

Your Trustee’s fee will be determined on a time and line basis i.e. the Trustee will make an appropriate charge for the time spent administering your case. In a typical Trust Deed lasting three years with an income contribution and no assets this will amount to approximately £4,000 plus VAT.

The estimated total fee will be advised to creditors in the Trust Deed proposal. The actual fee will be drawn by your Trustee on each anniversary of the Trust Deed (funds permitting) and is subject to approval by you and your creditors. If you or your creditors are unhappy with the level of the fee then you are able to request an audit of the fee by the Accountant in Bankruptcy (the government agency who supervises Trust Deeds in Scotland). The Accountant in Bankruptcy will then complete their audit and charge a statutory fee of 5% of any fees and outlays fixed for auditing such accounts, thereby reducing the funds available for distribution to creditors.

The fee is based on the following work being required to setup your Trust Deed and administer it through to its’ conclusion. Your Trustee along with suitably qualified members of his/her staff will undertake these tasks (this list is not exhaustive);

• The required number of meetings (at your home, our office or another suitable place) to give you ‘best’ advice prior to you deciding a Trust Deed is the appropriate debt solution for you.
• Preparation of the Trust Deed proposal.
• Complete the necessary work to have your Trust Deed registered as ‘protected’.
• Liaising with you, your creditors, the Accountant in Bankruptcy and any other third parties relevant to your case e.g. property surveyors, secured creditors etc.
• Monitor payment of your monthly income contributions.
• Realise any assets with a value to your Estate.
• Re-assessing your circumstances if they change during the term of the Trust Deed and reporting this to creditors where necessary.
• Conduct an annual review of your income & expenditure.
• Send an annual report to your creditors updating them on the progress of your Trust Deed.
• Adjudicate on creditors’ claims.
• Pay a dividend(s) to your creditors.
• Generally ensuring that the Trust Deed performs satisfactorily for you and for your unsecured creditors.
• Complete the necessary work to grant both your discharge and
• the Trustee’s discharge from the Trust Deed.

Trust Deed outlays:

Every Trust Deed also has the following outlays to pay:

• Edinburgh Gazette notice - £47 plus VAT
• Registers of Scotland - £30
• Bordereau insurance - £54 plus VAT (may vary dependent on value of realisable assets, assuming no more than £25,000)
• Accountant in Bankruptcy registration fee - £36
• Accountant in Bankruptcy supervision fee - £250

Note: It is essential that you maintain your agreed monthly contributions into your Trust Deed. If at any point during the term of your Trust Deed you feel you can no longer afford the payments agreed, you must contact your Trustee or their staff to discuss.

Contacting us to discuss any payment difficulties you are experiencing or changes in circumstances is essential, Trust Deeds do provide an element of flexibility, you may be allowed to have a payment break if you come up against unexpected costs (such as essential home repairs) or your Trustee may be able to review and amend your contribution to suit your changed circumstances.

If you fail to keep up with your agreed contributions and fail to contact your Trustee to discuss, your Trust Deed may fail, leaving you liable for payment of your unsecured debts at their original contractual payment level and in some cases you may be sequestrated (made bankrupt) by your Trustee for failing to comply with the terms of your Trust Deed.

Complaints Procedure

What do I do if I have a complaint regarding a Debt Management Plan?

RSM Tenon Debt Solutions strives to provide a first class service and we are committed to a process of continuous improvement.

If you wish to register a complaint regarding a Debt Management Plan, please contact us on the following number 0161 200 6354, or write to us at the following address.

Debt Management
RSM Tenon Debt Solutions
York House
York Street
Manchester
M2 3BB

We will acknowledge your complaint within 5 working days of receipt and aim to provide a full response within 10 working days. Your complaint will be overseen by an Insolvency Practitioner.

Should you consider that we have not dealt with your comments appropriately you may request that we perform an internal independent review of your complaint. A request for a review can be made in writing to:

Richard Brewer
Head of Compliance
RSM Tenon Recovery
66 Chiltern Street
London W1U 4JT

or by email to compliance.recovery@rsmtenon.com

If you do not receive a satisfactory response then you may be able to refer your complaint to the Financial Ombudsman Service at:

The Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London
E14 9SR
Telephone 0300 123 9 123

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

What do I do if I have a complaint regarding an IVA?

If you would like to discuss how our service to you could be improved or if you are dissatisfied with the service you are receiving, please let us know by writing to Gillian Wrigley, Director, at the following address:

RSM Tenon Debt Solutions
York House
York Street
Manchester
M2 3BB

If you consider that Gillian Wrigley has not dealt with your comments appropriately you may request, in writing, to the same address but marked for the attention of the Compliance Director, that we perform an internal independent review of your complaint.

This review would be undertaken by a person within RSM Tenon Debt Solutions who is not involved in the assignment and would be coordinated by our Compliance and Technical team.

Once you have received our final written response, if you are still not satisfied you may of course take up the matter with the Insolvency Practitioners Association:

Insolvency Practitioners Association
Valiant House
4-10 Heneage Lane
London
EC3A 5DQ

Tel. 020 7623 5108

What do I do if I have a complaint regarding a Trust Deed?

Trustee - Kenny Craig

If you would like to discuss how our service to you could be improved or if you are dissatisfied with the service you are receiving, please let us know by writing to Kenny Craig, Director, at the following address:

RSM Tenon
2 Blythswood Square
Glasgow
G2 4AD

If you consider that Kenny Craig has not dealt with your comments appropriately you may request, in writing, to the same address but marked for the attention of the Compliance Director, that we perform an internal independent review of your complaint. This review would be undertaken by a person within RSM Tenon Debt Solutions who is not involved in the assignment and would be coordinated by our Compliance and Technical team.

Once you have received our final written response, if you are still not satisfied you may of course take up the matter with The Institute of Chartered Accountants of Scotland at:

ICAS
CA House
21 Haymarket Yards
Edinburgh
EH12 5BH
Tel. 0131 347 0100

Trustee - Iain Fraser

If you would like to discuss how our service to you could be improved or if you are dissatisfied with the service you are receiving, please let us know by writing to Iain Fraser, Director, at the following address:

RSM Tenon
Suite 2B, Johnstone House
52-54 Rose Street
Aberdeen
AB10 1UD

If you consider that Iain Fraser has not dealt with your comments appropriately you may request, in writing, to the same address but marked for the attention of the Compliance Director, that we perform an internal independent review of your complaint. This review would be undertaken by a person within RSM Tenon Debt Solutions who is not involved in the assignment and would be coordinated by our Compliance and Technical team.

Once you have received our final written response, if you are still not satisfied you may of course take up the matter with the Insolvency Practitioners Association:

Insolvency Practitioners Association
Valiant House
4-10 Heneage Lane
London
EC3A 5DQ