The debt adviser
Debt advisers in the free sector (eg, in citizens advice bureaux and local authorities) can become DAS-approved debt advisers (see here). DAS-approved debt advisers give advice to clients and, if appropriate, prepare and submit applications for approval of a DPP. They also assist clients in nominating a payments distributor (see here) to deal with the transmission of the DAS payments from the client to their creditors. A client can only apply for a DPP if they have obtained advice from a DAS-approved debt adviser about their financial circumstances and the effect of the proposed programme. After the debt adviser submits the application, and it has been checked and issued to creditors, the DAS administrator takes on the responsibility for carrying out the administration of the DPP. If the client requires further money advice during the period of the approved DPP, the DAS administrator will recommend that the client contact a debt adviser.
The functions and duties of a debt adviser include:1Reg 12 DAS(S) Regs •considering and discussing with the client the options for dealing with their debts and the best course of action;
•assisting the client in maximising income;
•liaising with creditors on behalf of a client;
•advising the client about responsible budgeting;
•using the Common Financial Tool (CFT) to assess a client’s available surplus income;
•submitting a moratorium application form to AiB;
•assisting the client with and advise on an application for approval, variation or revocation of a DPP or an application for the review of a determination;
•preparing and submitting an application for approval of a DPP to the DAS administrator for consideration;
•preparing and submitting an application to vary or revoke a DPP on behalf of a client, if required;
•providing lay representation in court, if suitably trained and instructed by the client.
Who can be an approved debt adviser
If you were approved by the DAS administrator as a DAS-approved debt adviser before 1 July 2011, you continue to be approved unless the DAS administrator revokes or suspends that status.
You can be a approved debt adviser if you:2Reg 8 DAS(S) Regs •are qualified to act as an insolvency practitioner in accordance with the Insolvency Act 1986; or
•work for such an insolvency practitioner and have been given authority by the practitioner to act on their behalf as a debt adviser for DAS; or
•are a debt adviser working for an organisation which has been awarded accreditation at type II level or above in accordance with the Scottish National Standards for Information and Advice Provision (see here); or •are a debt adviser working for a citizens advice bureau which is a full member of Citizens Advice Scotland (see here); or •are a debt adviser working for a local authority.
A DAS-approved debt adviser must not advise a client with whom they have an association – eg, their partner or family member.
If you want to become a DAS-approved debt adviser but do not meet the criteria, you can apply to the DAS Administrator.
You must:3Reg 9 DAS(S) Regs •apply in writing, either electronically incorporating an image of your relevant organisation or on headed note paper, stating your name and business address;
•include a statement of your suitability to act as a debt adviser for DAS;
•provide evidence of any relevant training undertaken;
•enclose a valid criminal record certificate (a disclosure Scotland certificate) dated less than 12 months before the date of your application.
The DAS administrator aims to respond to your application within 10 days and may approve your application if satisfied you are a fit and proper and have undergone training the relevant training.4Reg 9 DAS(S) Regs
Who cannot be an approved debt adviser
You cannot become an approved debt adviser if you are:5Reg 10 DAS(S) Regs •a sheriff officer or messenger-at-arms, or an employee of such a person;
•a person or body providing financial services, or financial advice other than money advice, in the course of a business or otherwise for profit, or an employee of such a person, unless the person is:
•a person providing debt collection services, or an employee of such a person;
•a person convicted of an offence involving theft, fraud or other dishonesty;
•a person subject to a bankruptcy restrictions order (including an interim order) or bound by a bankruptcy restrictions undertaking, under legislation in Scotland, or England and Wales or Northern Ireland;
•a person in respect of whom a court has made a disqualification order, or who has had a disqualification undertaking accepted under the Company Directors Disqualification Act 1986;
•a person whose approval to be a DAS-approved debt adviser is revoked or suspended.
Period of approval as a debt adviser
There is no set period of approval in DAS. You must meet the criteria to become an approved debt adviser or have been approved by the DAS administrator. Unless your circumstances change and you no longer meet the criteria, or your approval is revoked or suspended for any reason, the approval continues for an indefinite period. If you intend to resign as a client’s debt adviser, you must assist the client to find a replacement debt adviser before you resign.
Although debt advisers are approved as individuals, they are granted DAS-approval status by virtue of their employment/engagement with a money advice organisation. Hence, they are subject to the terms and conditions of any contract or code of conduct issued by their employer.
Advice organisations are responsible for ensuring the information retained on the eDEN case management system is correct and that it is only relevant staff who have permissions to use the system. When a member of staff leaves, or no longer requires access to the system, the organisations manager/supervisor is responsible for deleting the user from the system. If they are unable to do so, or the individual is the manager/supervisor, they should contact the DAS Administrator as soon as possible with a request for the user to be deleted.
All organisations should be encouraged in terms of GDPR and general good housekeeping to monitor their staff access to the system at least every quarter. All eDEN users are reminded of the Data Protection statement which must be complied with every time they are logging in to use eDEN.
Revocation or suspension of a debt adviser
The DAS administrator can revoke or suspend an adviser’s DAS-approved status.6Reg 11 DAS(S) Regs The AiB provides written notice of any intention to do so.