The Fees Company Limited - 9 September 09

We have been made aware that The Fees Company Limited (TFC) which offers credit arrangements to parents has been placed into administration. KPMG have been appointed as administrators.

The timing of this is likely to mean that schools have not received payments due from parents who are signed up to the scheme and yet parents may have made a number of installment payments to TFC.
 
The contract in this situation is between the parents and TFC.  Accordingly it is our view that it is the parents that are creditors of TFC. Furthermore parents still remain liable to schools for unpaid fees.
 
Parents should be advised to stop immediately any direct debit payments to TFC and contact their banks to ensure that any transactions which can be stopped are.    
 
In relation to the monies which have already been transferred to the TFC and not passed on to the school parents should enquire with KPMG whether or not these are held on trust specifically ring fenced to go to the school. Based on the TFC’s standard terms and conditions this seems unlikely. Accordingly parents are likely to be unsecured creditors. They should lodge their claim in writing with KPMG for monies which have been paid into the scheme and not transferred to the school. The relevant contact details are Mr. Gavin Park, KPMG, 191 West George Street, Glasgow G2 2LJ. The telephone number is 0141 226 5511
 
Below is a link setting out more information about the administration process for your information https://www.r3.org.uk/uploads/documents/Creditors_Administration.pdf .  This is based on the English and Welsh system, however given that TFC are based in Scotland it is possible that this will be governed by the Scottish system, the website is http://www.companieshouse.gov.uk/about/gbhtml/gbw1s.shtml#three but clarification should be sought from KPMG.

Schools can enforce their contractual terms and demand payment from the parents. However schools will be faced with making a strategic decision as to whether or not they will enforce payment against parents who have lost money with the TFC and/or on what terms you would be prepared to accept payment. This is a commercial and PR decision.  When making this decision whether or not the TFC were recommended by the School may have a bearing.
 
If you are interested in exploring ways in which direct debit arrangements could be offered directly to parents by the school or alternative ways in which you could offer parent assistance with paying fees please contact Tim Walker, tim.walker@rickerbys.com (01242 246469).