Admin charges have increased

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Sandra.m
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by Sandra.m » Tue Sep 18, 2018 4:40 pm
I am in my 54th month of an IVA - left to pay is £8720 - paying £710 per month. I received a letter saying they were having my house valued to see if we have any spare equity. My question to you is: administration charges were quoted initially as £5k now they are saying £12K plus what I owe. Is this an acceptable practice? I cannot pay £20k - £4K = £16K with only 6 months to go. What are my options?
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Foggy
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by Foggy » Tue Sep 18, 2018 5:03 pm
What are these "Admin Charges" ? If they are fees, they can obnly charge what was agreed in the proposal or Chairman's Report (Chairman's Report overrides the proposal), unless you have agreed to a variation. They are not added on to the payments but are part of them already.

Do also read your equity release clauses, as these sometimes cause confusion.
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Lisa Thomas
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by Lisa Thomas » Wed Sep 19, 2018 3:31 pm
What are the admin charges - the Supervisors costs?

I presume they originally estimated that their costs would amount to £5k but the actual costs incurred have been £12k.

These are approved by creditors and deducted from the assets.

You would only need to worry about their costs if you were paying enough to cover the total debts, costs and interest in full.

If you are unsure you will need to ask your IP.
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