Parents hit as fees firm goes bust

Parents and private schools have been shocked by the collapse of The Fees Company, an Edinburgh firm that gives credit to parents who prefer to pay school fees by direct debit. The company went into administration yesterday and is estimated to owe hundreds of thousands of pounds.

Many parents have already paid for half of the autumn term's instalments during July and August, but the schools have not received the payments. Private schools that are already struggling in the recession, in particular smaller preps, will be hard hit by this news.

A large number of parents find it easier to pay fees by direct debit in 10 or 12 monthly instalments, rather than having to find thousands of pounds upfront at the beginning of each term. The Fees Company used to handle the payments, make the upfront payment and charge an administration fee to the school.

The accountancy firm KPMG (details below) has been appointed as administrator and has issued a warning that parents may struggle to retrieve their payments. At least 238 pupils at 70 schools in England may have been affected.

It's unclear, as yet, what has caused the company's collapse but KPMG has pointed to a 'black hole in the company's finances'. Blair Nimmo, a spokesperson for KPMG in Scotland says: "We will work with the schools and parents to provide them with as much help and assistance as possible during this uncertain time."

Schools are doing their utmost to help, as Julia Wood, a spokesperson for the Independent Schools' Bursars Association, told Tom-Brown.com today: "Bursars have a huge amount of sympathy for the parents and will try to help anyone affected by this situation. Some schools have just two parents who are affected, with others it's closer to 15 per cent."

If you have any agreement with The Fees Company, cancel it immediately, then ring your school bursar to organise a discussion. If you need to launch a claim for lost funds, contact KPMG on 0131 449 8840.

Get in touch

Have you been affected by The Fees Company's collapse? Tell us what has happened by leaving a comment below or emailing editor@tom-brown.com