das regulations 2011 sharon bell aib head of policy development

DAS Regulations 2011

Sharon Bell AiB Head of Policy Development

Sharon Bell | DAS Regulations 2011 | 23 June 2011

Key Changes

• The DAS register• The Advice Gateway• The DAS Regulation changes• DASH


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


Accessing DAS Register


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


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


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


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


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


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


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


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


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


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


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


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


(DA)Administration



Reject


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


(DA)Administration



Reject


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


(DA)Administration



Reject


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


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.


DASH Registration


www.dasscotland.gov.uk.


Login


DASHboard (Homepage)


Section 1 Case Details


Section 2 Details of the debtor(s) applying for a DPP


Debt Confirmation


DPP Proposal and Decision

das regulations 2011 sharon bell aib head of policy development

Documents

sharon bell das regulations

regulations das register

new das regulations

das register slide

purposes of das

das administrator

das approved money adviser

previous regulations