Notes for Guidance - Money adviser - Debt Arrangement Scheme

The DAS Administrator must revoke a DPP where a client has an application for bankruptcy awarded, granted a trust deed which has gained protected status, or upon the death of a client.

You and other eDEN users will be notified through the system of the decision. 

The DAS Administrator, or continuing money adviser will notify the client (taking caution in terms of wording in the event of the revocation being due to a person being deceased), creditors who are not signed up to eDEN, and the client’s employer (where the DPP is being paid by means of a payment instruction to the employer).

All payments agreed in the DPP will stop and the details will be removed from the DAS Register 14 days after the revocation was approved.

In cases the client was awarded bankruptcy, or their trust deed has been protected, their details will be recorded on the Register of Insolvencies.

The debts will be included in the bankruptcy or protected trust deed and creditors can reapply any interest, fees and charges to the debt after 14 days have elapsed from the date of revocation. 

In cases where a DPP was revoked upon the death of a client, creditors cannot take enforcement action, or reapply interest, fees and charges, until six weeks have elapsed from the date of revocation.

The DAS Administrator may propose to revoke a DPP if:

• if a client fails without reasonable cause to satisfy a standard or discretionary condition
• the client has knowingly made an untrue statement in an application for approval or variation
• a payment becomes due, and a sum totalling the equivalent of two payments is outstanding 
• in the case of a joint DPP, where the parties no longer qualify
• following receipt of an application from you, your client or a money adviser

The application should be made on eDEN. If the client does not have access to eDEN they can make the application in writing by post/email.

If the DAS Administrator proposes to revoke a DPP they will notify the client and all eDEN users. They or the continuing money adviser will inform all creditors who are not signed up to eDEN.

The revocation proposal will state the reasons for revocation and gives all parties four weeks to provide information or reasons why it should not be revoked.

The DAS Administrator will consider:

• any statement made by, or on behalf of, the client
• the nature of any failure or untrue statement
• any factor that may indicate whether or not the programme will be successful
• any representations made by the client or creditors 
• any other factor that the DAS Administrator considers appropriate

The DAS Administrator will inform you, the payments distributor and any creditors using eDEN of the decision providing the reasons. They, or the continuing money adviser will notify the client, the creditors taking part in the DPP who are not signed up to eDEN and the client’s employer, if the DPP instalments are being paid directly from the client’s wages.

The client can no longer make payments and their details will be removed from the DAS register after 14 days.

Creditors will be able to consider whether enforcement action is required, or appropriate, to recover the client’s debts. The client would be required to pay the debts under the terms and conditions under which the debt was originally provided.

However, creditors cannot take any enforcement action against the client until 14 days have elapsed from the date the DPP was revoked. Creditors can also apply interest, fees and charges to the debt once the 14 days have elapsed.

The client, you on the client’s behalf, or a creditor can request a review of the decision within 14 days of notification.  If a review is received creditors must wait a further 28 days before taking enforcement action, or adding interest, fees and charges.

If the application is rejected the client must make the agreed payments as they fall due. 

If it has been revoked due to the death of one of the clients, the revocation will have no effect for six weeks from the date of revocation. Creditors cannot apply any interest, fees or charges to the debt during this period.

This will allow the surviving client to seek money advice and creditors cannot take action against them.

If the DPP is revoked only as a result of the clients’ relationship breakdown they are both protected from creditor enforcement for a period of six weeks following the date of revocation. In effect, the AiB will treat both clients as if they have made a moratorium application in their own names.

This allows both clients to seek money advice and creditors cannot take action against them. 

Following the six week period, the client has the right to apply for a moratorium in their own name even if they have already had a moratorium within the preceding 12 months.

Where the client applies for a DPP in their own name within 21 days of the revocation of the joint DPP, creditors cannot apply any interest, fees or charges to the debt until a decision is made by the DAS Administrator.

You should treat any joint and severally liable debt as if each client owes the full outstanding amount. This protects each client in the event their ex-partner does not pay.

The creditor has the ability to apply to vary the client’s DPP if the debt is paid in full before the end of the agreed DPP period. 

Therefore, the client should not overpay. However, it is good practice for the client and money adviser to monitor this situation, and apply for a variation if required and if the creditor fails to do so.

If the client applies for a new DPP more than six weeks after the joint DPP was revoked, interest, fees and charges may be applied to the client’s debts, subject to the discretion of the creditor. 

You should make every effort to assist the client in these circumstances by submitting an application within six weeks.