Notes for Guidance - Creditors - Debt Arrangement Scheme

The DAS Administrator

An official appointed by Scottish ministers to administer and supervise the entire DAS process in line with statutory requirements. 

The DAS Administrator:

• approves, suspends or revokes the approval of money advisers
• approves and revokes the approval of payments distributors
• approves or rejects initial applications
• approves or rejects applications for a variation
• approves or rejects applications for revocation
• sends notices to the various parties on the above
• sends notice of recall of any arrestment of the client’s property or income, where the client’s DPP is approved
• administers a DPP submitted by money advisers in the free sector, for example, those in Citizens Advice and local authorities. If the client requires further money advice during the period of the approved DPP, the DAS Administrator will recommend that the client contacts a money adviser
• corrects an accidental error in any determination, made by the DAS Administrator under these Regulations, including those which are a result of incorrect information provided by a third party
• when requested carries out a review of a decision to:
  • approve or reject an application for a DPP
  • vary a DPP
  • revoke a DPP
• maintains the DAS Register

The DAS Administrator has authorised members of their staff to undertake these duties. Details on how to get in touch can be found in the DAS Administrator contact details.

Money adviser

Their functions and duties are to:

• consider and discuss with the client the options for dealing with their debts and the best course of action
• assist the client to maximise income
• liaise with creditors on behalf of a client
• advise the client about responsible budgeting
• use the Common Financial Tool to assess a client’s available surplus income
• submit a moratorium application form to Accountant in Bankruptcy (AiB)

If the client’s decision is to submit an application for a DPP and you are not an approved money adviser, the client must be referred to one.

Approved money adviser

An approved money adviser must meet the criteria under Regulation 8 of the Debt Arrangement Scheme (Scotland) Regulations 2011, as amended. 

Their functions and duties are:

• as listed above
• to assist the client with and advise on an application for approval, nominating a payments distributor, prepare and apply for variation or revocation or an application for the review of a determination
• to provide lay representation in court, if suitably trained and if they accept instruction from the client

For the purposes of the rest of this guidance reference to an approved money adviser will be shown as money adviser.

Continuing money adviser

A continuing money adviser is an approved money adviser who undertakes the full administration process in DAS. In most cases, the continuing money adviser will work for the payments distributor to encourage a more holistic approach to DAS in having a client with one point of contact.

A continuing money adviser has the same duties as a money adviser and also has responsibility for:

• dealing with the client
• the administration of the DPP
• the annual reviews required throughout the period
• providing information to the DAS Administrator and
• sending notices to the client, creditor, payments distributor and other parties as required
• making an offer of composition to creditors

The client

The client (individual) is someone who owes or is due to pay money to an individual or a company.

There is no maximum or minimum amount of debt the client must owe to allow access to the scheme. The client must have one or more debts and disposable income to pay these debts over a reasonable period.

A person may apply if they receive benefits only but must be able to show that they have surplus funds available. Please see client eligibility for full details.

The creditor

An individual or company due payment of a debt by the client under the terms and conditions agreed when the credit was provided. 

If a creditor has asked a collection agency to work on their behalf, they are still the owner of the debt and must make the decisions within the DPP. 

They can have the payments made to the collection agency but must make clear to whom the payments are to be made if not directly to them. The collection agency is only owner of the debt if they have bought it. 

Payments distributor

A payments distributor is approved by the DAS Administrator to collect the payments made by the client and distribute it on a pro-rata basis to creditors. The payments distributor is often the same organisation as the continuing money adviser.

AiB can also be nominated as the payments distributor.