Is a MEAF supposed to be an administrative charge? Yes! So does it now reflect the cost of an administrative charge? No! Have the lenders proved to us that their MEAF's can be justified? No! Has the FSA or CML reiterated that this should be, as they have stated, previously, an administrative charge only, now that the lenders have/or not revised their fees? No! Are the FSA and CML going to now come down hard on those lenders who clearly are charging way over the top for the MEAF? It does not look like it!
If the processing costs and all that takes costs on average £132.85 (recent Vertex & CML survey) and Defaqto say about £35 is real cost of a MEAF can we square the circle? No!
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So have we really achieved what is required to treat customers fairly and not bring the administration charges of the industry into disrepute? No! Does more need to be done?
Yes! Are the FSA and CML now likely to keep their heads down and do nothing more and hope it goes away? Seems so, but better ask them!
Danny Lovey
The Mortgage Practitioner
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