Notes for Guidance - Money adviser - Debt Arrangement Scheme

The DAS Administrator or continuing money adviser (with the consent of the client) can make an offer of composition. This offer must be made to each creditor in the DPP after 12 years from the date of approval of the DPP and where 70% of the total debt due has been paid. 

The 12 year period must not include any periods where the client was on an approved payment break.

A creditor who accepts the offer agrees liability of the client to repay that debt is discharged.

A creditor who does not respond to the offer within 21 days is deemed to have accepted the offer.

The DAS Administrator, or continuing money adviser, will maintain a record of creditor acceptances.

Full acceptance

If all creditors accept (or are deemed to have accepted) the offer the DAS Administrator will send written notification of the completion of the DPP to:

• the client
• any continuing money adviser
• the payments distributor
• the employer, where payments are being made directly from the client’s wages 
• the creditors

The creditor sector have advised debts which are completed by means of composition will be recorded with the credit reference agencies as partially settled. Any queries on this point should be directed to creditors or the credit reference agencies.

Partial acceptance

If the offer of composition is not accepted by all creditors, the DAS Administrator must vary the DPP to remove the debts owed to the creditors who accepted the offer, or who are deemed to have accepted.

The DAS Administrator will send written notification of the effect of the variation to the following:

• the client
• any continuing money adviser
• the payments distributor
• all creditors continuing to take part in the programme
• the employer, where payments are being made directly from the client’s wages

The creditor sector has advised debts included in a DPP which are completed by means of composition under the Regulations will be recorded with the credit reference agencies as partially settled. 

Any queries on this point should be directed to creditors or the credit reference agencies.