Sometimes referred to as a DAS, find out more information here
The Debt Arrangement Scheme (DAS) is a statutory debt management tool overseen by the Scottish Government. It lets you apply for a debt payment programme (DPP) to repay your debts over a reasonable period by making affordable monthly payments.
QUALIFYING CRITERIA
You have lived in Scotland for more than 1 day.
You have money left over once you’ve paid your household bills.
You owe money to one or more creditor.
COSTS
Fees: Once your DPP is approved, 10% of your payment is taken as fees to cover the running costs. The percentage is set in law, and there are no other hidden charges.
2% is paid to the Accountant in Bankruptcy (AiB) and 8% is kept by your payments distributor.
ADVANTAGES
Any interest or charges that are being applied to your debts will normally be frozen.
Your creditors can’t contact you or take any further legal action against you.
If your situation changes you can apply to vary your payment or apply for a six month payment break.
RISKS/DISADVANTAGES
10% of your monthly payment is taken as fees to cover the running costs.
Once you’re on a DPP your details will be put onto the DAS register. This is an online register that anyone can access.
A DPP will appear on your credit file for six years and is only available if you live in Scotland.
Failure: If you don’t keep up your payments then the DPP can fail – creditors can add interest and charges to the amounts you owe and if you’re not able to pay your debts they can take legal action against you.
OTHER INFORMATION
Change in Circumstance: If you’re expecting to receive a lump sum of money in the next 12 months, for example from income from the sale of a house, or money given to you by your family, then you must contact your debt advisor to arrange a review.