Regulation 14 Costs and expenses in relation to repayment by overseas borrowers

After regulation 66, insert—

“Costs and expenses of the Secretary of State

67.

(1)

Where the Secretary of State incurs reasonable costs or expenses in taking steps—

(a)

resulting from a borrower’s failure to comply with regulation 60, to—

(i)

obtain a borrower’s address outside the United Kingdom; or

(ii)

obtain information about a borrower’s income during any period of residence outside the United Kingdom;

(b)

to serve a notice under regulation 61(1) in any of the circumstances set out in regulation 61(2); or

(c)

to recover the outstanding balance of the loan in full under regulation 66,

the Secretary of State may require reimbursement of those costs or expenses by the borrower and may add them to the borrower’s loan account.

(2)

Where the Secretary of State incurs such costs and expenses as are referred to in paragraphs (1)(a) to (c) in respect of a transferred loan, the Secretary of State is entitled to recover such costs as are incurred on behalf of the loan purchaser and may add them to the borrower’s loan account.

(3)

Any sum added to the borrower’s loan account in accordance with paragraph (2) is owed to the loan purchaser.”.