Citation, commencement and extent

1. —(1) These Regulations may be cited as the Enforcement by Deduction from Accounts (Imposition of Charges by Deposit-takers) Regulations 2016 and come into force on 10th February 2016.

(2) These Regulations extend to England and Wales and Northern Ireland only.

Interpretation

2. In these Regulations “administrative costs” means the administrative costs incurred by a deposit-taker in complying with an obligation under Schedule 8 to the Finance (No.2) Act 2015 to which a final payment required under paragraph 13(11)(b)(ii) of that Schedule relates.

Imposition of charges

3. A deposit-taker may impose a charge upon an account holder in respect of administrative costs only where—

(a) there is an agreement between it and the account holder (or, as the case may be, account holders), which provides that the deposit-taker may charge a fee in respect of those costs,

(b) the deposit taker—

(i) has made the final payment required by paragraph 13(11)(b)(ii), and

(ii) has not previously imposed a charge in respect of those costs, and

(c) the amount of the charge imposed does not exceed the amount specified in regulation 4.

Amount that can be charged for administrative costs

4. The amount specified in this regulation is the lesser of—

(a) the amount of those administrative costs reasonably incurred by the deposit-taker, and

(b) £55.