PART 7VARIATION OF DEBT PAYMENT PROGRAMMES
Application for variation
36.—(1) An application to the DAS Administrator for variation of a debt payment programme may be made by—
(a)a debtor or a money adviser on behalf of the debtor; or
(b)subject to paragraph (2), a creditor.
(2) A creditor may not apply for a variation unless the creditor has first made a reasonable attempt to agree the variation with the debtor.
(3) An application under paragraph (1) must be made—
(a)by the debtor in writing; or
(b)by a money adviser or by a creditor in form 4.
(4) Where an application has been made under paragraph (1), the DAS Administrator is to intimate the application to—
(a)the debtor;
(b)the payments distributor;
(c)each creditor taking part in the programme; and
(d)any continuing money adviser for that debtor.
(5) In paragraph (1), “an application” in relation to a joint debt payment programme refers to an application made by both debtors jointly.
Grounds for variation
37.—(1) An application for variation of a debt payment programme may be made—
(a)on agreement between a debtor and each creditor participating in the programme;
(b)on agreement between a debtor and a creditor that a liability of the debtor to repay a sum is to be discharged;
(c)so interest, fees, penalties and other charges are not payable as provided for in regulations under section 7A of the Act;
(d)on a material change in the circumstances of a debtor;
(e)where a debt due at the date of approval of that programme was omitted from, or was wrongly assessed for the programme due to a mistake, oversight, or other reasonable cause;
(f)where a future or contingent debt, known but not quantifiable at the date of approval of the programme, is quantified and due for payment;
(g)where a debtor requires credit to meet an essential requirement; and
(h)where a debtor wishes to defer payments for a period of 6 months, with the period of the debt payment programme extended for an equal period, where circumstances specified in paragraph (3) have resulted in a reduction in the debtor’s disposable income of 50% or more.
(2) An application for variation shall not be made in respect of any other debt of a debtor.
(3) The circumstances for the purposes of paragraph (1)(h) are—
(a)a period of unemployment or change in employment;
(b)a period of leave from employment for maternity, paternity, adoption or to care for a dependant;
(c)a period of illness of the debtor;
(d)divorce, dissolution of civil partnership or separation from a person to whom the debtor is married or the civil partner;
(e)death of a person with whom the debtor shared care (financial responsibilities or otherwise).
(4) In paragraph (1)(h), “disposable income” means disposable income calculated on the same basis as set out in form 1 (on the basis of equivalent details provided on form 3).
Approval of a variation
38.—(1) The DAS Administrator must approve a variation proposed under regulation 37(1)(a), (b) or (c).
(2) The DAS Administrator must approve a variation proposed under regulation 37(1)(d) to (h) if the variation is fair and reasonable.
(3) The DAS Administrator in determining whether a variation is fair and reasonable—
(a)must have regard to—
(i)the matters specified in regulation 25(2);
(ii)the views of the debtor;
(iii)the views of the other debtor in the case of a joint debt payment programme;
(iv)the views of a creditor taking part in the programme and of any creditor making the application; and
(v)the views of any money adviser who has provided advice to the debtor;
(vi)whether any expenditure of the debtor declared in assessing disposable income appears to be necessarily incurred by the debtor; and
(vii)any variation previously approved under regulation 37(1)(h); and
(b)may have regard to any other factor the DAS Administrator considers appropriate.
(4) Approval of a variation may be made subject to a condition under regulation 28.
Notification of approval or rejection of a variation
39.—(1) The DAS Administrator must intimate in writing the reasons for, and effect of, the approval or rejection of a variation (including any condition attached under regulation 28)—
(a)to the debtor;
(b)to the money adviser who made the application on behalf of the debtor;
(c)to the payments distributor;
(d)to a creditor—
(i)taking part in the programme;
(ii)who has applied for the variation; and
(e)to any continuing money adviser for that debtor.
(2) A continuing money adviser notified under paragraph (1)(e) must notify an employer if there is a payment instruction under regulation 32.