What happens when a DPP is approved?

When a debt payment programme (DPP) is approved, the debt(s) will be paid through a single regular payment as detailed in the DPP.  An approved payment distributor is responsible for making payments to the creditors.  A money adviser or DAS Administrator will make the necessary arrangements with an approved payments distributor to allow the DPP to start.  Payments to the payment distributor can be made by either:

• direct debit or standing order
• payment mandate to your employer
• smart card, swipe card, smart key or other type of payment card or key
• another method of payment which has been agreed with the DAS Administrator

Creditors will be notified that a DPP has been approved if all creditors consent to the DPP (or are deemed to have consented i.e. not rejected the DPP within the 21 day period) or where the DAS Administrator approves the DPP under the Fair and Reasonable test criteria.  This will confirm the amount and frequency of payments and include information on the payments distributor.   From the date the DPP is approved, a creditor is required to:

• freeze all interest, fees and charges on the debts in the DPP
• stop any planned enforcement actions
• stop any correspondence with the debtor seeking payment for the debts in the DPP while the DPP is on-going
• not attempt to persuade the debtor to withdraw from the programme or to make additional payments on top of those specified in the programme
• provide any necessary information to assist the management of the DPP upon request