Helping people with debts in Scotland - New legislation to bring changes to the Debt Arrangement (DAS) Scheme in Scotland

What is the Debt Arrangement Scheme (DAS)?

DAS is a Scottish Government-backed debt management scheme. The scheme allows you to repay your debts through a Debt Payment Programme (DPP).

Launched in November 2004 it is only available in Scotland They are often designed as a ‘ legally binding Debt Management Plan.’ which helps you repay your debts by making affordable monthly payments.

The programme allows people to pay off their debts over an extended period of time, while giving them protection from the creditors who may be taking action against them to recover the debt. It can last for any reasonable length of time and, if approved, will freeze all interest, fees and charges on the debt included, resulting in them being waived if the programme is fully completed.

“Debt Arrangement Scheme (DAS): The Way Forward,” is a report published in March this year after two consultations and a review of the previous DAS reforms brought in by amendment regulations in 2013 and 2014.

The new DASSA regulations 2018 (Debt Arrangement Scheme (Scotland) Amendment Regulations 2019) is to introduce improvements to the Scheme. The aim is to increase accessibility to the Scheme and to improve sustainability of DPPs and offer greater flexibility.

If the amendments are approved and implemented they would

1. remove the requirement for the mandatory inclusion of housing debt in a DAS DPP;
2. allow the debtor to have more flexibility when calculating the payment offer they are making towards their DAS DPP;
3. standardise the provisions governing when a debtor may obtain further credit while in DAS, in line with other insolvency products available to the people of Scotland;
4. promote transparency within money advice organisations working with DAS by specifying that, where appropriate, they have the arrangements in place to ensure compliance with Financial Conduct Authority requirements;
5. enhance aspects of Business DAS to allow it to be more sustainable and accessible for Scottish businesses; and
6. make provision for the debtor to be able to offer a lump sum payment to their DPP from the proceeds of the future sale or re-mortgage of their dwelling house.

If approved the DASSA Regulations 2018 will come into force from 29 October. Further regulations are planned for 2019.