13.—(1) After regulation 36, insert—
36A.—(1) The DAS Administrator may propose a variation of a debt payment programme where a liability, or part of a liability, of the debtor is discharged by a creditor applying compensation between that debt, or part of that debt, and a liability owed by the creditor to the debtor.
(2) The DAS Administrator may not do so unless it has made a reasonable attempt to agree a variation between the debtor and creditor.
(3) The proposal must be intimated in writing to those mentioned in regulation 36(4)(a) to (d).”.
(2) In regulation 37 (grounds for variation)—
(a)after paragraph (1)(e), insert—
“(ea)under regulation 36A where liability of a debtor is discharged by a creditor applying compensation;”; and
(b)in paragraph (1)(h)—
(i)for “of 6 months” substitute “not exceeding 6 months”; and
(ii)for “an equal period” substitute “a period equal to the period of deferment”.
(3) In regulation 39 (notification of approval or rejection of a variation) after paragraph (1)(c), insert “(ca) where there is a payment instruction under regulation 32, to the employer;”.