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Sharon Bell | DAS Regulations 2011 | 23 June 2011
Key Changes
• The DAS register• The Advice Gateway• The DAS Regulation changes• DASH
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Legislation
The new DAS regulations commence on 1 July 2011• The Debt Arrangement Scheme (Scotland) Regulations 2011 • The Debt Arrangement Scheme (Interest, Fees, Penalties and
other Changes) (Scotland) Regulations 2011
Previous regulations will be revoked by these and all approved DPPs will be administered by the 2011 regulations
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Changes to Regulations
• DAS Register will be FREE.• No longer need a password to access the register
Regulation 19• 6 week moratorium (1 in 12 month period, except where a Joint DPP is
revoked)• Debtor gets protection once application submitted by money adviser • New information on the Register- date of request to approve a DPP• Debtor’s Date of Birth
Regulation 30• Where a Joint DPP is revoked – 6 week moratorium
Sharon Bell | DAS Regulations 2011 | 23 June 2011
The DAS Process (simplified model)
DAS Computer System
Private Sector Administration
(DA)Administration
Proposal to Creditors
(DA)Fair & Reasonable
Reject
Debtor Advice
Free Sector
Private Sector
DAS Application Payments Distribution
Accept
Dual Administration RouteAdvice Gateway Payments Distribution
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Changes to Regulations
• Widen the Money Advice Gateway.
• AiB responsible for the ongoing administration of DPPs from free sector money advisers – including all existing DPPs.
• All information on DASH
Sharon Bell | DAS Regulations 2011 | 23 June 2011
The Advice GatewayRegulation 8
More individuals can be approved to be DAS money advisers. These include:
• Existing approved DAS money advisers.• Qualified insolvency practitioners & an employee given
authority by that insolvency practitioner.• A money adviser for an organisation which is accredited at
Type 2 level or above against Scottish National Standards for Information and Advice Provision;
• Money advisers working for a citizens advice bureau• Local Authority money advisers
Must not be an associate of the debtor
Sharon Bell | DAS Regulations 2011 | 23 June 2011
The Advice GatewayRegulation 10
• You may not become an approved money adviser if you meet any on the conditions under Reg 10:
eg. sheriff officers, financial adviser, debt collector, person convicted of an offence etc.
Added• A person whose approval to be a DAS approved money adviser is
revoked or suspended.
Removed• A person who is bankrupt
Sharon Bell | DAS Regulations 2011 | 23 June 2011
The Advice GatewayRegulation 9 To become a DAS approved money adviser if you don’t meet any of the criteria
you may apply to the DAS Administrator.
• apply in writing, either electronically incorporating an image of your relevant organisation or on headed note paper, stating your name and business address
• include a statement of your suitability to act as a money adviser for the purposes of DAS
• provide evidence of any relevant training you’ve undertaken, and • enclose a valid criminal record certificate under Part 5 of the Police Act 1997 (a
disclosure Scotland certificate) dated less than 12 months before the date of your application.
The DAS Administrator may approve your application if satisfied that you are a fit and proper person to be a DAS approved money adviser. SCHEDULE 3
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Application Process
The debtor:• Has access to more advisers to access DAS• Debtors will continue to receive face to face advice • Increased debt options for debtors• Can use the services of a private or free sector Money Adviser• Access DPP if they granted a trust deed which has not been
protected (reg 21)• Can make their payment under the DPP by electronic banking
Debtor Advice
Free Sector
Private Sector
DAS Application
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Fees
• Up to 10% of the payments made by debtors are used to cover the costs associated with their DPP.
Regulation 5• A new fee of 2% for the consideration of an application for
approval of a DPP, to be paid to the DAS Administrator
Regulation 17• An administration fee up to 8% of the sum due to be paid to
creditors, to be paid to the payments distributor selected to receive and distribute the debtor’s payments to the creditors
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Money Adviser FunctionsRegulation 12
The money adviser:• Completes an application form which is sent to the DAS
Administrator (via the DASH)• A fee charging money adviser must inform the debtor that
advice and access to DAS free elsewhere giving the name/names of all money adviser providing a free service with a 10 kilometre radius of the debtor’s usual place of residence (reg 12(2))
• Have an agreement in writing that the debtor is willing to pay the continuing money adviser’s fee
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Money Adviser Functions continued
Regulation 12
DAS Administrator take over the administration role:
• Less administration for free sector advisers, meaning advisers are freed up to see more clients
• Undertake 12 monthly review • New IT system - central point for creditors, money advisers &
payment distributors • Submit the proposal to creditors (electronically), database of
creditors being created
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Changes to Debt Payment Programmes
Regulation 21• Single debt DPPs, except if there is a time to pay direction or a time to pay
order, or a time order.
Regulation 22• DPP in joint names where the debtor has a joint and severally liable debt:
– husband or wife– civil partners of each other– living together as husband and wife, or – living together in a relationship with the characteristics of a
relationship between a husband and wife except that they are of the same sex.
Regulation 23• Allows electronic communication of DPP proposals• Still have deemed consent, except where DPP is ONE debt
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Administration
Regulation 25• DAS Administrator will supervise the process and make F&R
decisions where appropriate.Regulation 27• Standard conditions are mainly the same• Debtor must make first payment under the DPP within 30
days of approval• Complete and submit tax or duty returnsRegulation 29, 39 & 44• DAS Administrator and continuing money adviser will issue
notices to the parties of DPP.
DAS Computer System
Private Sector Administration
(DA)Administration
Proposal to Creditors
(DA)Fair & Reasonable
Reject
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Administration
Regulation 37• Payment Holiday Variation for 6 months where debtor’s disposable
income is reduced by 50% or more:– a period of unemployment or change in employment – a period of leave from employment for maternity, paternity, adoption or to
care for a dependant – a period of illness of the debtor – divorce, dissolution of a civil partnership or separation for the debtor– death of a person with whom the debtor shared care (financial
responsibilities or otherwise) • When considering whether to vary under F&R, the DAS Admin will
consider any previous Payment Holiday Variation (reg 38)
DAS Computer System
Private Sector Administration
(DA)Administration
Proposal to Creditors
(DA)Fair & Reasonable
Reject
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Administration
Regulation 40• DAS Administrator will automatically revoke a DPP if the
debtor grants a trust deed and it becomes protected• Where Joint DPP revoked and debtor applies within 21 days
for DPP in own name creditors cannot add interest, fees or charges – Reg 4 DAS (Fees) Regs 2011
Other changes• Deleted the regulations that related to Composition• Reduced the number of Forms
DAS Computer System
Private Sector Administration
(DA)Administration
Proposal to Creditors
(DA)Fair & Reasonable
Reject
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Payments DistributionPART 3AiB tendered for the role of payments distributor.
4 firms have been approved:
• Begbies Traynor; Carrington Dean; MLM & Gregory Pennington.
Benefits:• More competition through competitive tender.• Tendering contracts will ensure the best returns for creditors.• Payments distributors can charge up to 8% of the total distribution.• Private sector who also provide service under the contract – total
administration.• Creditors will still have net receipts of 90% or more.
Payments Distribution
Accept
Sharon Bell | DAS Regulations 2011 | 23 June 2011
DASH
The Debt Arrangement Scheme Hub, DASH • Creditors (major & minor);• Money advisers;• Payments Distributors; and • Debtor.
supply the DAS Administrator with all necessary information to enable them to be registered as an account holder.
Sharon Bell | DAS Regulations 2011 | 23 June 2011
Section 2 Details of the debtor(s) applying for a DPP