Changes to DAS will hurt those in debt

Changes to a long-running debt repayment scheme in Scotland have been criticised by two leading debt charities, who say that the new rules will end up with more families’ having their houses repossessed.

According to Money Advice Scotland and Citizens Advice Scotland the new regulations that will guide the Debt Arrangement Scheme are counterproductive and will cause less people to benefit.

The Debt Arrangement Scheme was introduced by the Scottish Executive back in 2004 in order to help those struggling with large debt repayments. Under the scheme, those in need of help would meet with a money advisor who would put together a repayment plan with creditors and as long as the specified repayments were kept to, the creditors would be unable to take legal action.

Under the new changes, it is no longer necessary for borrowers to take money advice and those eligible must now pay back a minimum of £100 or 1% of the debt each month.

“Given the current economic climate, we would consider there is a need to widen access to debt management routes, not restrict them further,” said a spokesman for Citizen Advice Scotland.

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