Regulation 13 Administrative costs

(1)

Provision included in a direct deduction order under section 24 (1) of the Act (bank’s administrative costs) may not enable a bank to deduct more from the amount standing to the credit of the account specified in the order than the amount specified in paragraph (2).

(2)

In the case of a regular direct deduction order, the amount is the lesser of—

(a)

£10 for every deduction required by a direct deduction order;

(b)

£40 in any month;

(c)

the administrative costs reasonably incurred by the bank in making the deduction from the account.

(3)

In relation to a deduction made under a lump sum direct deduction order, the amount is the lesser of—

(a)

£55;

(b)

the administrative costs reasonably incurred by the bank in making the deduction.