Notes for Guidance - Creditors - Debt Arrangement Scheme

The legislation allows for fees to be charged to cover the administrative costs associated with the DPP. The client does not pay any fees for the administration these are borne by you and the other creditors.

There is a 2% fee for the consideration of an application for approval of a DPP, which is paid to the DAS Administrator. There is also an administration fee, which is currently 20% of the sum due to a creditor, to be paid to the payments distributor.  

These fees will only be applied when the client has paid their regular payment to the payments distributor and will be deducted prior to any money being paid to the creditors.

Creditors will always receive a sum minus the applied fees. Therefore, in cases where the application was made on or after 4 November 2019, creditors will receive payment of 78% of the debt when the DPP is completed.  For cases where the application was made prior to that date, creditors will receive payment of at least 90% of the debt.