1. Introduction

CPAG

1. Introduction

Normally, a creditor can only force a client to pay their debts if they take the correct legal action. This requires them to get a court order or a tribunal decision. The action such creditors take to enforce payment of their debt is referred to as diligence. However, some creditors have fast-track powers that do not require them to go to court to recover the debt. Therefore, the action they take is not classed as diligence.

Money can be taken from a client’s earnings without a creditor going to court or a tribunal, but only in certain circumstances. These are:

•‘direct earnings attachment’ (DEA) – used by the DWP, HMRC and local authorities (see here);

•‘deductions from earnings order’ (DEO) – used by the Child Maintenance Service (see here).

Statutory moratorium

A statutory moratorium does not stop a DEA or a DEO as they do not count as diligence.

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Debt Advice Handbook Scotland 1st ed - with new material

Written in partnership with Citizens Advice Scotland, CPAG is delighted to announce the first edition of the Debt Advice Handbook Scotland. Based on CPAG’s best-selling Debt Advice Handbook, it details the stages of the debt advice process in Scotland and the key skills needed to give good advice. No money adviser should be without this essential guide.

The Handbook provides the most comprehensive information needed by advisers on the tools and strategies to help clients with their financial difficulties. It details the key stages of money advice, including on interviewing clients, establishing liability, prioritising debts, preparing a financial statement, negotiating with creditors and dealing with bailiffs. Emphasis is placed on taking due care of vulnerable clients and making sure that any payment arrangements agreed are appropriate. There is a focus on sustainable credit arrangements that do not affect a client’s abilities to pay essential living expenses and priority debts.

It is the go-to tool for specialist debt adviser as a first step in accessing primary legislation and regulations, and is also a reliable guide and training aid for the new debt adviser. Advisers who undertake debt advice alongside other sorts of advice work or other professional disciplines – such as social workers and housing officers – will find this handbook an indispensable resource.

Fully indexed and cross referenced to law, official guidance and to court and tribunal decisions, tactical guidance and examples are included throughou

Author(s):

CPAG

This content was last updated:2024-10-22

Word count182,696

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