The Scottish Parliament approved the Debt Arrangement and
Attachment (Scotland) Act 2002 and subsequently went on to approve
the detailed rules set out in the Debt Arrangement Scheme
(Scotland) Regulations 2004 (the DAS Regulations). These
regulations came into force on 30 November 2004. Further amendments
were approved in March 2007 by the Debt Arrangement Scheme
(Scotland) Amendment Regulations 2007 and by the Debt Arrangement
Scheme (Scotland) Amendment No 2 Regulations 2007. These rules came
into place on 30 June 2007.
The Scottish Executive introduced the Debt Arrangement Scheme as a debt management scheme and once approved it has the effect of stopping creditors from taking action to enforce payment.
The DAS has five main players. They are the debtor, the creditor, the approved money adviser, the payment distributor, and the Scottish Executive (the DAS administrator).
A DAS only applies to individual debtors who reside in Scotland with two or more creditors. Creditors in any part of the UK can be included in the scheme.
[The DAS does not cover limited companies, partnership firms (although the individual partners are covered), charities, trusts, and so on.]
The money adviser applies to the DAS administrator for approval of the debt payment programme (DPP) proposed by the client. If the programme is approved the payments distributor selected by the money adviser divides the client’s payment amongst the creditors.
The key principles of a DPP are
You can find more information at www.moneyscotland.gov.uk.
EIS Edinburgh (EISE) has responsibility for these cases. Additional information can be found at DMBM805000.