Marc Gander - The Consumer Survival Handbook

A 220 page introduction to all things consumer related by our own BankFodder.

Includes energy companies, mobile phone providers, retailers, banks, insurance companies,debt collection agencies, reclaim companies, secondhand car sellers, cowboy garages, cowboy builders and all the rest who put their own profits before you.


Patricia Pearl - Small Claims Procedure - A Practical Guide

An excellent guide for the layperson in how to use the County Court - a must if you are intending to start a claim.

£19.99 + £1.50 (P&P)

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  1. #1

    Default 'Insolvency gravy train' means lawyers collect millions while creditors only recoup pennies, argues MP

    Lawyers are 'riding the insolvency gravy train' by charging vast sums to wind up companies while creditors only recoup a few pennies in the pound, an MP has said. Mike Weir, the SNP business and enterprise spokesman, has called for a Westminster inquiry into insolvency practices following several cases where lawyers have collected millions.

    Mr Weir has asked for the investigation amid fears that victims of the Farepak collapse could receive just 5p in the pound, while administrators make 3million. The Christmas hamper firm went bust in 2006, owing 37 million to around 119,000 savers. Mr Weir said: 'The insolvency industry appears to be raking in a fortune at the expense of creditors. After four years, Farepak victims have been left with pennies while the administrators have walked away with millions, and this by no means is an isolated case.'

    The MP for Angus has also singled out law firm Ernst and Young for criticism after it claimed 4.3m in fees following the collapse of music chain Zavvi. Creditors of the company could see as little as 5 per cent of their share of the firm's 185million debt. Another firm Mr Weir has targeted is Deloitte and Touche which collected 2.5 million from the collapse of Land of Leather, nearly 7% of its 37 million debt. The furniture chain's creditors received just 9p in the pound.

    A Deloitte spokesman said the company's fee relating to Land of Leather included time spent overseeing the manufacture and distribution of around 20,000 outstanding sofas. Mr Weir added: 'People are actually dying before the insolvency gravy train comes to a halt. Part of the problem seems to be that the industry is largely self-regulated. 'What's more, there is no independent complaints investigation procedure or Ombudsmanicon to adjudicate on malpractice - there are no questions over fees or delays. 'Just like (regulation of) the banks, current UK insolvency regulation has failed.'

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  2. #2

    Default Re: 'Insolvency gravy train' means lawyers collect millions while creditors only recoup pennies, argues MP

    I can't put the link as I have not posted 20 posts yet but I see the Insolvency service is take ex farepak directors to court. It could take up to 2 years. It's to disqualify them as directors for a period up to 15 year or for 15 years..... I'm not sure about the time limit.

    Maybe a longer member would like to put the report links up.

  3. #3

    Default Re: 'Insolvency gravy train' means lawyers collect millions while creditors only recoup pennies, argues MP

    I have posted the link on another thread. Thanks.. .

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