Hi all. I have a client who will be a takeover plan... their current TPA is charging them $1000 Deconversion Fee!! I think I vaguely remember hearing about this sort of thing, but never paid much attention to it because we would not charge such a fee.

Is this typical? Unfortunately, this client wants ME to reduce my first year fee!! I am astounded this morning... please advise.

Thanks.

PS - I also posted this on "Operating a TPA firm" board. Wasn't sure which forum would be quickest to answer!

We do not charge such a fee. At times, we have charged a minimal copying fee if we have to duplicate material that has already been sent to the client. We have encountered such fees with takeover clients who left Schwab. Other times we have heard of "report fees" being charged, that is the prior provider will charge $500 to produce a final report.

Duplicate post. Click here to discuss. Thanks!