Home > Corporate Solutions > Compliance > The Debt Arrangement Scheme (Scotland)

The Debt Arrangement Scheme (Scotland) Regulations 2004

Background and Scope of the Regulations

The Debt Arrangement Scheme (DAS) Regulations came in to force in December 2004. The Scheme provides a way for an individual to manage repayment of multiple debts. It is not generally available for an individual with a sequestration or trust deed and can only be applied for by an individual who is habitually resident in Scotland.

How the DAS works

A debtor must apply to the DAS Administrator for approval of a debt payment programme. The DAS Administrator, who has overall responsibility for the administration across Scotland of the Scheme, must determine whether the debt payment programme is fair and reasonable. Unless a creditor has a valid objection they must give their consent to the debtor entering the scheme. The creditor is deemed to consent if it fails to respond within 21 days after the date of intimation.

The DAS Administrator is to appoint Money Advisers. A Money Adviser's main responsibilities are to act as an adviser to the debtor and assist them in the administration of the debt payment programme as well as liaising with the creditors on their behalf. The Money Adviser also reviews the debt payment programme every six months and can act, if he so wishes, as a lay representative in court upon the request of the debtor.

The DAS Administrator must also appoint a Payments Distributor. A Payment Distributor's main responsibilities include, assisting the Money Adviser in their role, distribute sums received in accordance with the debt payment programme as well as providing payment distribution reports to the Money Advisers and to the creditors.

The Debt Arrangement Scheme (DAS) Register

The DAS Administrator is responsible for maintaining a register of all debt payment programmes as well as applications for debt payment programmes and details of the debtors.

The DAS Register contains the following information relating to the debtor:

• The full name, including any former name;
• The age;
• The home address or addresses, and any business address; and The business address of the Money Adviser (or the money advice body for that Adviser), of the debtor.

The register also contains the following information relating to the order itself:

• An application for a programme that has yet to be approved;
• An application by the DAS Administrator to the sheriff for approval of a programme;
• A notice that a programme is to be approved;
• An approved programme;
• An application for variation of an approved programme;
• An application by the DAS Administrator to the sheriff for variation of an approved programme;
• A variation of an approved programme; and
• An appeal to the sheriff or sheriff principal.

The DAS Register can be inspected by:

• A Money Adviser, on behalf of a debtor, in relation to an entry relating to the debtor.
• A creditor, or prospective creditor, of a debtor;
• A payments distributor; and
• Any other person, on reasonable cause being shown to the DAS Administrator.

Impact of the DAS on the Credit Industry

The DAS impacts the credit industry for both their existing and new borrowers. The Regulations stipulate that no further credit can be granted to a debtor under the DAS other than under the following circumstances:

• Credit approved by a variation of the programme;
• Further credit given as part of a cyclical loan arrangement in operation at the date of approval where the payment by the debtor does not vary by reason of that credit being given e.g. a revolving credit agreement or a current account mortgage;
• Trade credit incurred by the debtor in the ordinary course of a business;
• Credit for emergency repairs and for reasonable funeral expenses in respect of an immediate family member.

If a creditor takes on a new borrower who is in an approved debt payment programme the creditor is then prohibited from taking action to recover that debt until the debt payment programme ends.

Update

The Scottish Executive has agreed to supply DAS data to the credit reference agencies and Callcredit are proactively working to get this loaded and incorporated in our products and this page will be updated as soon this happens.

Back to Compliance Area

© Callcredit Limited 2001 - 2008. All rights reserved.

Callcredit Limited, One Park Lane, Leeds. West Yorkshire. LS3 1EP.
Telephone: +44 (0) 113 244 1555 Facsimile: +44 (0)113 234 0050 Email: info@callcredit.co.uk