Regulation 18 Direct debit repaymentI1

This regulation F1applies if—

Where this regulation applies, subject to paragraphs (3) and (4), the Authority must give notice to HMRC, in accordance with regulation 15(3)(e) that deductions F6in respect of the relevant loan from the borrower’s earnings are to cease from the date specified in the notice.

The borrower must complete and return to the Authority in the format required by the Authority from time to time a standing instruction to the borrower’s bank authorising monthly lump sum payments to the Authority in such sum as is required to ensure payment of the outstanding balance F7of the relevant loan within the next 23 months.

The first date on which a bank, authorised by a borrower to make a payment, makes a payment must fall no later than 30 days after the date which the Authority specifies in a notice pursuant to regulation 15(3)(e).

If at any time the instruction to the borrower’s bank—

The borrower may, at any time, agree with the Authority that repayment in accordance with this regulation will cease, and thereafter the Authority must give a notice to HMRC and to the borrower in accordance with regulation 15(3) that repayment through the tax system is to recommence unless regulation 15(8) would otherwise apply.

The Authority may suspend or delay the operation of paragraph (5) if and to the extent it appears to the Authority expedient to do so, taking into account the causes of the failed payment and the Authority must notify the borrower of any suspension or delay as the case may be.

This regulation will not affect any voluntary repayments made by a borrower by any method pursuant to regulation 15(1) F9or 15A(1).