Paragraph 5 Further requirements before making a direct deduction orderF1

(1)

Before making a direct deduction order, the Secretary of State must give the bank where the account in question is held, the liable person, and, in the case of a joint account, each of the other account holders, a notice—

(a)

identifying the account that would be subject to the proposed order,

(b)

stating the amount that would be recoverable under the proposed order,

(c)

setting out the terms of the proposed order,

(d)

if the account is a joint account, setting out the Secretary of State’s duty to make an assessment as to the liable person’s beneficial interest and the presumption that applies (see paragraph 4), and

(e)

identifying, for the benefit of the liable person, the recoverable amount to which the order relates.

(2)

The notice must invite the liable person and, in the case of a joint account, each other account holder—

(a)

to make representations about the terms of the proposed order, and

(b)

in the case of a joint account, to make representations about the liable person’s beneficial interest in amounts in the account.

(3)

The notice must set out the means by which, and the period within which, representations may be made.

(4)

The period must be a period of at least 1 month beginning with the day after the day on which the notice is given.

(5)

The Secretary of State must—

(a)

consider representations made in accordance with the notice, and

(b)

in light of any representations —

(i)

in the case of a joint account, make the assessment required under paragraph 4(1), and

(ii)

in any case, decide whether, and in what terms, to make a direct deduction order in respect of the account.

(6)

A notice under sub-paragraph (1) may be given to the bank before it is given to the other persons to whom it is required to be given under that sub-paragraph (and for the effect of giving the notice to the bank see paragraph 11 (restrictions on accounts)).

(7)

Where a notice is given to the bank in reliance on sub-paragraph (6), the notice must be given to the other persons as soon as reasonably practicable after being given to the bank.

(8)

If, following the giving of a notice under this paragraph, the Secretary of State decides not to make a direct deduction order, the Secretary of State must, as soon as reasonably practicable, notify every person given a notice under sub-paragraph (1) of the decision.

Annotations

Textual amendments

F1: Sch. 3ZA inserted (2.12.2025 but only for the purposes of making regulations, 24.6.2026 in so far as not already in force) by Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28), s. 109(2)(b), Sch. 5 (with s. 105); S.I. 2026/601, reg. 2(1)(g)