DAS 2011

1. DAS 2011 Proposed changes to the Debt Arrangement Scheme

2. Programme • Introduction • Key Changes – Overview • The Advice Gateway • The DAS System • Stakeholder engagement • Questions and discussion of the issues • Agree main issues to feedback • Close

3. Key Changes – Overview AiB have instructed draft regulations which aim to: • Widen the Money Advice Gateway. • Take over the ongoing administration of DPPs from free sector money advisers. • New Computer system accessible by Money Advisers, creditors, payment distributers and the DAS Administrator. • Introduce a joint DPP for couples. • Introduce DPPs for single debts. • Remove unnecessary forms. • Make changes to payments distribution process.

4. The Advice Gateway More individuals can be approved to be DAS money advisers. These include: • Existing approved 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 Consideration will be given to training for other advisers who do not readily fit into these categories.

5. Advice Gateway continued Benefits of the proposed changes: • Debtors will continue to receive face to face advice • Solution to the ‘postcode lottery’ • More advisers can offer DAS • Increased debt options for debtors • Holistic approach to debt solutions DAS Administrator take over the administration role: • Less administration for free sector advisers, meaning advisers are freed up to see more clients • New IT system - central point for creditors, money advisers & payment distributers

6. The DAS System (simplified model) Payments Distribution Dual Administration Route Advice Gateway

7. Application Process • The debtor: • Has access to more advisers to access DAS. • Can use the services of a private or free sector Money Adviser. • The money adviser: • Completes an application form which is sent • to the DAS Administrator (via the system). • A fee charging money adviser must inform the • debtor that advice and access to DAS free elsewhere. • The DAS Administrator: • Records the application in the DAS Register (allowing protection earlier). • Submits the proposal to creditors (electronically) – create database of creditors.

8. The DAS System • DAS Administrator will administer all free sector DPPs. • Private sector DPPs will be administered by the private sector supplier. • All DPP administration will be conducted on the DAS system. • All users can review the DPP on the DAS system • Creditors will log in to the system to consent or refuse proposals. • DAS Administrator will supervise the process and make F&R decisions where appropriate. • Notices will be generated from the system regardless of the party conducting administration. • Debtors will still have 12 month review.

9. Payments Distribution AiB will take on the role of payments distributer and will tender the processing of the payments to appropriate third party organisations. Benefits: • More competition through competitive tender for distributors on AiB’s behalf. • Tendering contracts will ensure the best returns for creditors. • Private sector who also provide service under the contract –total administration • AiB will charge an application fee by taking % of the distribution - to fund the DAS system, training and publicity.

10. Stakeholder Engagement A series of workshops with stakeholders arranged to discuss progress & obtain feedback: • 19 October - Glasgow Workshops • 20 October - Edinburgh Workshops • 3 November - Meeting with CAS / MAS • 9 November - Glasgow Regs Workshop • 11 November - Payment Distributer Meeting • 15 November - Edinburgh Regs Workshop • 18 November - Creditor Workshop • late November - Meeting with CAS / MAS Lay regulations before end of the Year Aim to have new DAS regulations commence end June 2011

11. DAS How do we take this forward? Access • Are the new categories of approved money adviser sufficient? Or are there other advisers who need to be able to propose a DPP under DAS? • Should there be specific accredited training for DAS? • Should a person who is bankrupt or paying a Trust Deed be allowed to provide advice to someone who is considering a DPP? • Will the proposed changes encourage wider participation in DAS? If not, what else can be done? Creditors and borrowing • What is the best way to actively encourage greater creditor engagement with DAS? • Will greater volumes of DAS cases will encourage greater creditor participation? Debtors • Should there be an option for a payments holiday in DAS for those people who have had an income shock, such as unemployment, illness, marriage breakdown and maternity ? • How long would be appropriate? Quality Control • Should there be a supervisory or regulatory role built into DAS? • Who and how can this be achieved? Marketing • What marketing, advertising or publications are needed?

12. Feedback What can we take away from this workshop • Main issues? • Key benefits? • Future activity?

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