Debt Arrangement Scheme (DAS) - Timescales to setup?

Constantinople

Hi,

I'm in the process of trying to set up a DPP under DAS and submitted all my paperwork and account numbers to StepChange about 3 weeks ago. I've also sent the template letter with my intimation to all my creditors, but I'm still hearing from them every day.

Does anybody have any experience of setting up something under DAS with StepChange, how long it takes, and what the process is likely to be from here? I guess this is a busy time of year for them.. how long generally until my name is on the DAS register?

It seems very difficult to find people with experiences of DAS online so any information/advice would be great.

Thanks!

National_Debtline

Hello there.

Firstly, I really, REALLY, like the Debt Arrangement Scheme. I think it is excellent. It's a real shame that the folks south of the border cannot benefit from them.

The law that underpins the scheme was improved recently, as of 2nd July interest, fees, penalties or other charges should be frozen the moment you make the application. You should check with Stepchange to ensure that this is in place for you.

As far as timescales are concerned they are usually quite quick. You may be able to get a little more information from the following website:

http://www.dasscotland.gov.uk/help-centre/worried-about-debt/how-does-das-work

Best wishes,

David @ NDL

NumberOneScrooge

Hmmmm, sorry to disagree but I have just had my DAS approved (10 days ago) and the interest and charges certainly did NOT stop when the application was made.

To date, fresh interest and charges have still not stopped appearing on statements and I don't expect them to!

Reading over the approval letter it seems that Creditors are infact allowed to keep charging Interest and Charges throughout the life of the DAS. On successful completion of the DAS however, the Interest and Charges are waived. That is quite, quite different to suggesting that Interest and Charges are stopped on application!

The clear implication is that if you renege on your DAS, all the Interest and Charges up to that point become payable, on top of the outstanding debt. It's a bit like that notorious deferred interest on your new sofa!!

As for timescales - it may be that the OP is initially dealing with a Money Manager who eventually puts the proposal to the DAS Administrator (a completely different entity). Your Money Manager may take days or weeks to finalise the proposal depending on how busy they are and how quickly you provide documents, and very importantly how quickly your Creditors confirm the level of each debt. Without all your Income details, expediture details, and debt confirmations, the Money Manager cannot put the proposal to the DAS administrator. This is where the delay occurs.

Once the proposal goes to the DAS administrator, they very quickly contact the creditors with the repayment proposals (Debt Payment Plan) drawn up by your Money Manager.

Your creditors then have 21 days to accept, reject, or ignore the payment proposals (DPP). So there's a minimum 21 days delay there.

If ALL your creditors accept or ignore your DPP it is deemed to be accepted. If ANY of your Creditors object, the DAS Administrator may (if he/she consideres your DPP to be "fair and reasonable") exercise his discretion to approve it anyway.

Once your DAS is approved, Creditors have 14 days to appeal - but since the DAS administrator has alrerady ruled it to be fair and reasonable, I can't imagine how that could succeed.

Hope that helps!

coolcait

NumberOneScrooge has given a good, more technical, explanation of how interest etc works in a DAS.

However, most money advisers will describe it as interest being 'frozen' from the date of application, simply because that is easier for most people to grasp,especially when they may already be in a state of distress.

So, 'frozen' from the date the full repayment proposals are sent to creditors by the DAS Administrator (or private sector money adviser). And 'written off', by law, if and when you complete the DAS.

It's not just creditors who can ask for a review of the DAS Administrator's decision, wihtin 14 days. If someone applies for DAS, but the application is rejected, then they can ask for a review. Same goes if their DAS is revoked.

If the review confirms the original decision, there's still the chance to go through the courts, with an appeal to the Sheriff.