Thumbnail folder permissions set to 764

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Hi All, pretty simple question really, but I cannot figure out the answer. Concrete5 was installed successfully, however when you go to FileManager > and upload an image, the Thumbnail that is created does not display (red cross). It appears the folders that the image is stored in all have permissions of 764. The quick fix is to change these to 775, but this is not practical, my hosting support team are unsure why this is but have been most willing in helping. Does anyone have the answer to this, is this a server side configuration within apache maybe ? the actual image file has permissions of 664, its just the folders and sub-folders all have 764. Very odd. thank you for any help offered. Mark.