How does DAS work?

A debt payment programme (DPP) under DAS will only be considered after the money adviser has reviewed the debtor’s debts, income and expenditure and confirmed details of outstanding debts with creditors.  The money adviser will contact you (accompanied by a signed mandate authorising them to act on the debtors behalf) to ascertain what outstanding debt the debtor has.  As their creditor, the money adviser will ask you to confirm the information you have regarding the debtor’s debt(s), including the outstanding balance(s) of the debt(s), contractual payments and details of existing payment protection etc.  At this stage, neither party are committed to the DPP.

To apply for a DPP, a debtor must seek advice from a DAS approved money adviser to discuss whether a DPP is an appropriate option for them.  If appropriate, the money adviser will propose a DPP based on the debtor’s disposable income and total value of debt to calculate a reasonable period of time over which the payments will be made to creditors. 

If you are writing to the debtor to say that you intend to take court action against them to recover the debts, the debtor may ask their approved money adviser to write to the DAS Administrator to intimate their intention to apply for a DPP.  The DAS Administrator will register this intimation on the DAS Register.  Once on the DAS Register the debtor is protected for a period of six weeks against any creditor action.  Therefore, during this period you are unable to enforce payment of any debt(s).   

Regardless of whether the debtor has intimated their intention to apply to the DAS Administrator, once their application is received they are protected against any creditor action.

You will be notified of a debtor’s application in the form of a DPP proposal. 

 

What information is in a DPP?

You will be requested to consent to a DPP proposal which will include the following information:

  • the debtor’s details
  • the total amount the debtor owes you
  • the amount you will receive in each instalment
  • the frequency of the proposed payments to you
  • the proposed length of the DPP ,and
  • any lump sum payments or realisation of assets.

You are required to respond to this request within 21 days from the date of the request.  If you do not respond to the proposal within 21 days you will be deemed to have consented to the terms of the DPP.  Responses can be made either in writing or via DASH to the DAS Administrator or the continuing money adviser. 

You may request the DAS Administrator to investigate the value of debt(s) included in the DPP if you believe that the details contained in the proposal are inaccruate.

 

What happens if a DPP is approved?

If all creditors consent to the DPP (or are deemed to have consented) or where the DAS Administrator approves the DPP under the Fair and Reasonable test criteria, you will be notified of the approval.  This will confirm the amount and frequency of payments and include information on the payments distributor.

From the date the DPP is approved, you must:

  • cease any planned enforcement actions;
  • stop any correspondence with the debtor seeking payment for the debts in the DPP whilst the DPP is on-going;
  • stop any attempt to persuade the debtor to withdraw from the programme or to make additional payments in respect of a debt included in the programme; and
  • upon request provide necessary information to assist the management of the DPP

All interest, fees and charges on the debts in the DPP must be frozen from the date the money adviser or DAS Administrator submits the application to creditors for approval (provided that the proposal is approved). 

 

What happens if a DPP is rejected?

You will be notified if the DAS Administrator rejects the DPP. 

The debtor will be advised to seek further money advice and may consider alternative debt management or debt relief options such as bankruptcy or a protected trust deed.  The DAS Register will be updated with the notice of rejection.  At this time you will be able to consider whether further enforcement action to recover debts is appropriate.  The terms and conditions under which the debt was originally provided continue to apply. 

 

Can I appeal a decision made on a DPP?

If you disagree with the decision made on a DPP by the DAS Administrator you have the right to request a review of the DAS Administrator's decision.  If you disagree with the review decision you may appeal to a sheriff on a point of law.

 

What happens if a DPP is completed?

A DPP reaches completion at the end of the agreed period of the DPP.  This will be when the debtor makes all the payments as agreed, or has made a lump sum payment equal to the sum of all outstanding payments.  The debt in the DPP will have been paid in full, minus the fees paid to the DAS Administrator and the payments distributor.  The payments distributor will write to notify you that the DPP has completed. 

 
 

Worried About Debt?

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Creditors

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Money Advisers

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