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Lehman's UK legal advice costs £60m in first year

These pompous self-serving justifications for extortionate charge out rates no doubt originate from those who swim in the cesspool of insolvency practitioners. It's well known throughout the industry that professionals involved in insolvency work charge extortionate and above market rates just because they know they can get away with it. The creditors are generally either too poor - often, ironically, as a result of the insolvency - to mount an effective legal challenge to the costs and in any event their own personal benefit would only be marginal even if successful. Furthermore, the creditors are hardly ever sufficiently organised to mount a united front against the sharks who, again ironically, can easily afford to defend any challenges because of the extortionate fees they've extracted. "The process (and fees) are overseen by a Court .." Yeah, right, that's a really effective control - not! No, people involved in insolvency work are vultures, whose first consideration by far is lining their own pockets. Anything left for the creditors is purely incidental. At the end of the day it's just a more lucrative form of ambulance-chasing - or perhaps more accurately hearse-chasing.

19-Mar-2010

0:41 am