Notes for Guidance - Money adviser - Debt Arrangement Scheme

The client will be subject to standard conditions which are listed in Regulation 27.

Included is a requirement for the client to continue to pay any continuing liabilities they have.

The client must also be made aware of any discretionary conditions imposed by the DAS Administrator which they must comply with.

These will be included in the approval letter and are listed in Regulation 28. 

Clients must not receive further credit unless it is:

• credit approved by a variation of a DPP (see section on Variation)
• credit up to a maximum of £2,000, with certain restrictions
• further credit given as part of a cyclical loan agreement which was already in operation when the DPP was approved, where the payment to the DPP made by the client does not vary because this credit has been given
• trade credit incurred by the client in the ordinary course of business. If the client applies for this credit, they must give the creditor written notification of their DPP
• credit for emergency repairs as specified in Regulation 33(6). If the client applies for this credit, they must give the creditor written notification of their DPP
• credit for reasonable funeral expenses for an immediate family member. If the client applies for this credit, they must give the creditor written notification of their DPP

It will not be competent for creditors to serve a charge for payment or to commence or execute any diligence to enforce any debt owed by the client. Creditors will not be able to petition for the client’s sequestration.

If a creditor does give credit to a client with a DPP for reasons other than those allowed by Regulation 33, they will not be able to take action to recover this debt until the DPP is completed or revoked.

Creditors must, on request by the DAS Administrator or Continuing Money Adviser provide a statement of all the client’s liabilities. They must also notify any liability where they have security against a co-obligant of the client.

If the client has previously granted a trust deed which was not protected, the trust deed in effect ceases to exist. Therefore, it is unlikely that the creditor will receive a dividend from that trust deed agreement.