4.3.8.70 Effect of Garnishee Order on Instalment of PLP

Introduction

The rule against inalienability ceases to apply once an instalment of PLP has been paid into a bank account because the payment loses its character as an instalment at that point.

However there is further protection for an instalment that has been paid into an account from the effect of a court order in the nature of a garnishee order. The court order does not apply to a saved amount, worked out under the method statement in section 97. The definition of saved amount (1.1.S.10) references this provision.

The saved amount is worked out as follows:

  • Step 1 - work out the total amount of the instalments that have been paid to the credit of the account during the 4 week period immediately before the court order came into force.
  • Step 2 - Subtract from the Step 1 amount the total amount withdrawn from the account during the same 4 week period.
  • The result is the saved amount.

Act reference: PPLAct section 66 Protection of instalment, section 97 Effect of garnishee etc. order

Policy reference: PPL Guide 7.3.4.20 Debt Recovery by Garnishee Notice

Last reviewed: 3 July 2017