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How does DAS affect me?
How does DAS effect creditors?
DAS is a diligence stopper. If your debtor has an approved debt payment programme (DPP) under DAS, you cannot take any enforcement action (diligence) or sequestrate (bankrupt) them. Similarly, if your debtor’s details are on the DAS register because they have intimated their intention to apply for a DAS DPP, or have a DPP proposal which is awaiting approval, you are unable to take enforcement action against them.
Throughout the period of the DPP it is not competent for you to contact your debtor and try to convince them to come out of the DPP, or to persuade them to make additional payments to you for a debt that is included in the DPP.
Debtors taking part in DAS cannot access more credit throughout the period of the DPP unless they have an emergency. You should not give credit to someone under DAS unless it has been agreed by the DAS Administrator. If you have not received an agreement by the DAS Administrator for the credit then you may be unable to recover that debt. However, if a debtor does get additional credit whilst in a DPP with out the permission of the DAS Administrator their DPP may be revoked and could result in them being made bankrupt. If the DPP is revoked, you can apply all interest, fees, penalties and charges which would have become payable for a debt after the approval date.
What are the benefits of DAS to creditors?
The benefits that DAS provides to creditors is the assurance that:
- the debtor has actively sought money advice
- the debtor’s income and expenditure has been assessed by an approved money adviser
- the debtor wishes to repay their debt
- the DAS Administrator takes into account any comments from you when considering the DPP
- you will receive a regular payment towards the debt owed to you
- 90% or more of the debt will be repaid if the DPP is complete
- no additional debt recovery costs involved
- the DAS Administrator is overseeing the DPP
- you can track the case through DASH
