Can a DPP be changed?

An average debt payment programme (DPP) can last for over eight years, therefore, within the period of the DPP there may be times when the debtor’s circumstances change.  The DAS legislation allows the debtor, you or a money adviser acting on behalf of the debtor to apply to the DAS Administrator to vary the approved DPP

Variation can result in one or more of a number of changes:

• the regular payment may be increased
• the regular payment may be reduced
• the frequency of the payment may change
• the length of the DPP may be reduced
• the length of the DPP may be increased, or
• a new condition may be attached to the DPP

If you wish to apply for a variation of a DPP, you must first have made a reasonable attempt to agree the variation with the debtor.   Only then can you apply to the DAS Administrator using Form 4

• What is a form 4?

The DAS Administrator must agree to a variation in the following circumstances

• where all parties agree that the DPP should be varied or
• where the debtor and creditor agree that there is no longer a debt to be repaid and
• where the DPP was approved prior to 1 July 2007 and the debtor wishes to apply for the freezing of interest, fees and penalties on their debts

The DAS Administrator may approve a variation subject to the fair and reasonable criteria in the following circumstances

• where there has been a material change of circumstances which may include an increase or decrease in the debtor income or  
• where a debt due at the date of the agreed DPP was omitted or overlooked or
• where a future debt, not quantifiable at the date the DPP was agreed, becomes due or
• the debtor required emergency credit to pay for, emergency repairs,  funeral costs etc or
• where the debtor wishes a payment holiday for a period of 6 months

An application for a variation to a DPP for any other reason will only be considered under exceptional circumstances by the DAS Administrator.   On receipt of the application, the DAS Administrator will notify you of the application.  Where the DAS Administrator is considering the request under the fair and reasonable criteria, the views of the debtor, you and the debtor’s other creditors, money advisers or any other relevant factors will be taken into account.  The DAS Administrator will then notify all parties in writing of the decision and the reason(s) for this decision. 

• What is the fair and reasonable test?