Just curious, what is the annual management fee and the rate (and fees?) that they charge on arrears?
Management company fees in PIA
- Thread starter Fastmover
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Yearly fee is around €550 and interest appears to be around 20%...I will get exact figure then I get my GDPR Information from the management company. I’ve had mental issues for a period of time and I let it slide and now the interest is nearly 5000 a year
Does that mean that no management fee was paid for c. 15 years or so and the arrears and interest have been accumulating all that time?
Whatever about that I guess that you still need to get further clarification from the PIP, make a formal complaint if necessary, try to get it resolved with them, and if that doesn't work, pursue the ISI PIP complaints process?
Whatever about that I guess that you still need to get further clarification from the PIP, make a formal complaint if necessary, try to get it resolved with them, and if that doesn't work, pursue the ISI PIP complaints process?
Raging Bull
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Froma PIP perspective these fees are hard to get rid of. Most opt out unless they forget. Should a deal be reached they are bound by the result.
There's ways to get rid of them like Mortgage to Rent in a property sale but also in Bankruptcy where they are unsecured debt.
Surcharge interest of 20% is often and possibly illegal on numerous grounds such as unfair terms.
I've seen 44k bills on these and it's basically a form of blackmail. They need greater regulation.
There's ways to get rid of them like Mortgage to Rent in a property sale but also in Bankruptcy where they are unsecured debt.
Surcharge interest of 20% is often and possibly illegal on numerous grounds such as unfair terms.
I've seen 44k bills on these and it's basically a form of blackmail. They need greater regulation.
Like I said there’s a long history with mental illness and I was always playing catch up. That is why my finances got so bad I needed a personal Insolvency resolution. When I have all the GDPR from every area I’ll decide my next course of action. Thanks for your advice
@ClubMan , I'm glad you dug deeper into how the management fees built up. I was also intrigued. And as @Raging Bull says, "surcharge interest of 20% is often and possibly illegal".
One of the aims of the insolvency process is to return the debtor to solvency at the end of it. Upon completion of the PIA, the OP still owed €23k to the management company. It's possible that the OP was insolvent exiting the PIA process. If this was the case, then the PIA has been futile exercise, and an utter failure.
If the OP is insolvent, then the more important goal should be a return to solvency. Holding the PIP accountable for the management of the PIA is merely one part of the overall situation.
One of the aims of the insolvency process is to return the debtor to solvency at the end of it. Upon completion of the PIA, the OP still owed €23k to the management company. It's possible that the OP was insolvent exiting the PIA process. If this was the case, then the PIA has been futile exercise, and an utter failure.
If the OP is insolvent, then the more important goal should be a return to solvency. Holding the PIP accountable for the management of the PIA is merely one part of the overall situation.
Raging Bull
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We don't know the individuals circumstances but given they opted out it's certainly a question whether the PIA would be suitable thereafter
Re interest rate, take a look at the lease, here is an example
Current interest rate for a personal overdraft in AIB is 11.85%
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Happy New Year to everybody
I was hoping maybe you could give me some advice and help how these management fees are illegal and what areas should I look at
Many thanks for your help
Whatever about the issue of whether or not the management fees should've been dealt with by the PIA/PIP, why do you think that they might be classified as "illegal"? Surely the fees and any possible penalties/interest for non payment are set out in the management company lease and/or other official documents (e.g. AGM minutes, annual reports etc.)?
Hello I don’t know how they could be illegal I’m just referring to what raging Bull said. That’s why I asked a question of him for some pointers
Raging Bull
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There are two ways you can tackle these firstly the rate itself being extortionate under unfair terms regulations...but the compounding of interest being Interest on Interest is Surcharge interest and not permitted
Have u checked arts of association of the management companies on voting rights of members cos under ours the voting rights vest in the subscribers to the arts of association developer solicitors until 60 days after the developer has no interest in the estate and the common areas transferred to the management company? Under S188 of the Companies Act as applied by S1206 member voting right are set out by in S1206 but in the event of conflict between S1206 and Arts of Assoc the arts of assoc prevails. In a nutshell if the voting rights of omc vest in subscribers till developer gone form estate not on title then MEMBERS OWNER MEMBER simply do not have the power
In what circumstances is compound interest illegal?
I have received an email from Grant Thornton that stated they miscommunicated the inclusion of the management fees in my PIA. They have offered to liaise with the management company. Not sure what that will achieve but it’s good they have admitted the error
I have dealt with Grant Thornton in proceedings against MPH Ltd and Tom Kavanagh in respect of the MUD Estate at Chapel Farm. Assuming the member who set the service charge had the power to do so under the art and companies act they also have to be set by MEMBERS in accord with S18 of the MUD Act and sinking fund in accord with S19 of the MUD Act. . Under S18 of the MUD Act service charge require agreement of 75 per cent of the members and even this will have no effect for service charge for expenditure that is or WAS the responsibility of the developer (captures a developer not trading) and until three years after the common areas transferred to the omc. So question were service charge u are being charged for plus interest set in accord with S18 of the MUD Act and C Act that give precedence to arts on voting rights .. both in our case C Farm agree .. if common areas not transferred and developer still on title in estate then member of omc just do not have
MPH is now dissolved and that move thing a great deal forward for me as a home owner but i hope u dont mind me saying this but it seem to me that home owner entering these pia agreement .. shld be taking LEGAL ADVISE. If owner member of an omc invested in common fund may be nest one u ever made. .. besst investment.