Notes for Guidance - Money adviser - Debt Arrangement Scheme

You must make the application using eDEN.

Neither you nor the client need to sign the application form.  However, you must tick the declaration box on eDEN that the client has been given advice and has consented to proceed with the application without signing it.

If the client prefers to sign the form, you can print the completed application from eDEN, ask the client to sign, and post to the DAS Administrator.

You must:

• ensure the client fully understands the implications of applying for a DPP, including that it will be recorded on the public DAS Register
• advise the client they do not have protection from their creditors until the application is accepted by the DAS Administrator and the proposal is issued to creditors
• review the statement of the income and expenditure prepared using the Common Financial Tool
• agree with the client how much of the surplus income will be offered as a contribution to the DPP
• confirm with the client if any rent or mortgage arrears are to be included in the DPP
• check if the client has any assets that could be sold or lump-sum payments that may be made as part of the DPP
• inform the client of the standard conditions which apply if it is approved
• inform the client discretionary conditions may be applied for the DPP to be approved
• confirm if the client wishes to offer the sale or re-mortgage of their home as a discretionary condition. This is entirely the choice of the client
• agree the method by which the client will make their regular instalment, for example, standing order or payment from wages 
• remind the client, if it is approved, they must pay their first instalment within 42 days of the date of approval

The application needs to be completed as fully as possible with the following:

• correct creditor details (not a collection agency acting for the creditor, unless the creditor has a named authorised representative on eDEN or the debt has been sold on). For example, if the debt is for council tax arrears, the council should be added as the creditor not the sheriff officer collecting the debt
• creditor sort codes, account numbers and reference numbers relating to the debt
• the correct level of debt

You should provide the DAS Administrator with the following information:

• a copy of a scanned signed client mandate. The information on the mandate should be exactly the same as the client information added to eDEN
• where you are nominating the AiB as Payments Distributor, you must upload to eDEN the documentary evidence used to complete your client identification checks. This is to allow the AiB to expedite the payment set-up, allowing the DPP to start and finish earlier which will minimise disruption to the client and creditors
• details of any arrestment order
• any information you consider relevant to allow the DAS Administration to make a decision

All cases will be checked by the DAS Administrator and if the information is not consistent the case will be returned to the adviser for clarification and rework.

You should use eDEN to contact the creditor to confirm the details of debt.

Where the creditor is not registered to use eDEN you should do this by any other means. 

Where the debt is not confirmed using eDEN the following details should be noted within the relevant debt:

• the date the debt was checked
• how it was checked
• the name and department of the creditor contact who confirmed the details
• amount of the debt

The details of debt should be no more than four weeks old on the date on which the application is submitted. 

Failure to follow this process will result in the case being referred back for further investigation.

The case will also be returned if you do not note the means by which debts were confirmed, if not done via eDEN.

If you are unable to confirm the debt the following details should be noted within the relevant debt:

• method of contact
• dates of contact
• full contact details used e.g. postal address, email address, telephone number

When satisfied the information is complete, you must submit the application to the DAS Administrator. If there is information missing the application will be returned for rework.

When all the information on the application is complete, the DAS Administrator will issue the application to creditors, through eDEN.

For cases from public sector money advisers, the DAS Administrator will also issue letters requesting creditor consent to non-eDEN users.

Continuing money advisers are responsible for issuing letters requesting creditor consent to non-eDEN users. This correspondence must be sent the next working day.

All interest, fees, penalties or other charges are frozen from the date the application is recorded on the DAS Register, and the request to consent is issued. They will remain frozen until the DPP application is rejected, or an approved DPP is completed or revoked.

The request is designed to give creditors all the information they need to correctly identify the debt, understand the payment proposal being offered, and decide to accept or reject it. They will be provided with:

• the client’s details (name, address, postcode and date of birth)
• details of the joint client, if applicable
• the financial statement
• how much of the surplus income will be offered as a contribution (if the client does not wish to use the full surplus)
• any rent or mortgage arrears which have not been included
• the total amount owed to the creditor
• the amount that will be repaid after the fees have been deducted (net amount of debt)
• sort codes, account numbers and reference numbers (if known)
• the amount to be paid in each instalment
• the frequency of the proposed payments
• the proposed length of the DPP, any lump sum payments or realisation of assets

They are required to respond within 21 days which starts from the date of posting or electronic transmission to the creditors.

Responses can be made either in writing, or via eDEN and you must update any non-eDEN responses as soon as they are received.

There are three possible responses from each creditor:

Consent

The creditor responds within the 21 days and agrees to the proposal.

Deemed consent

The creditor does not respond to the application within the 21 days. In this case, the creditor is deemed to have agreed to the proposal, unless the DPP is only for a single debt, where it will be treated as if the creditor has not consented.

Non consent

The creditor responds within the 21 days and does not agree to the proposal

If the client wishes to withdraw their application, they may do so in the period between the application being received and the DPP being approved or rejected.

The request for withdrawal must come from the client in writing to the DAS Administrator. The client may prefer to contact you in the first instance, and you should forward the written request to the DAS Administrator.

Protection from diligence will cease from the date the DAS Administrator enters the withdrawal of the application on the DAS register.