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DAS Regulations 2011. Sharon Bell AiB Head of Policy Development. 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
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DAS Regulations 2011 Sharon Bell AiB Head of Policy Development
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
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) Payments Distribution Dual Administration Route Advice Gateway
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 Gateway Regulation 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 Gateway Regulation 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 Gateway Regulation 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
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 Functions Regulation 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 returns Regulation 29, 39 & 44 DAS Administrator and continuing money adviser will issue notices to the parties of DPP.
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)
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
Payments Distribution PART 3 AiB 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.
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.
