What is an administrative fee?
Administrative fee is a fee that the organization can assess in exchange for providing certain types of services. Insurance companies, creditors, banks, investment companies and other types of institutions require consumers and business entities to pay different administrative fees. Some fees are continuously evaluated, while other fees are one -off fees.
Many creditors require the loan applicants to pay the administrative fee known as a request, processing or original fee. This fee applies to some costs associated with the processing of a loan application, such as a loan fee. In addition, many loan agents are paid commission, in which case the administrative fee can cover part of the wages of the originator. Other types of costs related to loans such as evaluation fees are not classified as administrative fees for creditors, as these fees cover the cost of third -party suppliers rather than the creditor's own expenditure.
mutual funds and daLarge investment companies charge a wide range of administrative fees from the annual charges of account management to business fees. In some cases, investors must pay a commission known as a burden when they buy or sell stocks, but investors can avoid paying these fees by purchasing so -called loads. However, funds without load are not without costs, because many investment funds without load charges an administrative fee rather than a load. Many investors confuse the burden on administrative fees, but in the investment world, the burden on commissions paid to brokers, while administrative fees are paid fund companies rather than sellers.
Financial companies, such as banks, often require account holders to pay the administrative fee for receiving duplicate copies of past bank statements or canceled checks. In addition, while some banks offer free accounts many institutions store monthly administrative fees Nand account holders. In some cases, banks give up fees for clients who maintain account balances that exceed certain levels. Many banks also charge an administrative fee for clients who want to carry out transfers and other types of time -consuming one -time transactions.
Insurance companies and other financial institutions usually pay free funds to clients free of charge. This distribution usually takes the form of checks and may take several days for the bank or customer to receive a check in the post office. As a result, some institutions offer to speed up payments to clients who agree to pay an administrative fee. Some banks charge one fee for sending funds through the transfer of wire and smaller fee for the fact that the checks sent overnight by express rather than by mail.
Institutions including universities, recruitment offices and counseling companies are among other types of entities that often evaluate administrative Fees. Clients of these companies sometimes PLAti fee for registering your information with these companies. In other cases, entities evaluate a fee whenever clients require information. Laws in many locations require that providers of services of all kinds make the plans for administrative fees to clients before assessing fees.