News In Focus
Minister to revoke Bankruptcy Fees Regulations following criticisms
Proposed increases of up to 188% in the fees charged by the Accountant in Bankruptcy are to be revoked ahead of a consultation on an alternative scheme, a Scottish Government minister confirmed today.
In a letter to the Holyrood committee considering the regulations, Paul Wheelhouse, Minister for Business, Innovation & Energy, said that in the light of issues raised at an evidence session last week, "the proposed regulations will be revoked and... AiB will consult on our behalf on revised proposals, taking into account constructive points raised by the committee in the evidence session".
Govan Law Centre had claimed before the committee that the new fees on a repossession sale of a home could take thousands of pounds away from the equity due to be repaid to the debtor. It argued that AiB was pursuing asn "unsustainable" policy of full cost recovery in fees when the number of sequestrations had fallen and was unlikely to return to previous levels.
Its position was supported by the Institute of Chartered Accountants in Scotland, which called for "a fundamental review of the funding of the agency and the setting and structure of fees".
The regulations also introduced, without prior consultation, an interest rate of 8% on unpaid fees.
The minister had attempted to defend the fees as the fairest way forward, but undertook to take the points made on board.
Click here to view the minister's letter.