There are no setup fees payable by an individual entering into a Debt Payment Plan (DPP) through the Debt Arrangement Scheme. This is the same for all individuals whether they use an insolvency practitioner/private sector firm (e.g. Harper McDermott Ltd) or a public sector organisation (e.g. CAB or local authority Money Adviser).
The costs of administering the scheme are borne by the creditors and are the same for all DAS providers i.e. from every £ received into the scheme, 22p is used to pay these costs; this 22p is split between the DAS Administrator (2p) and the Money Adviser (20p).
There may also be a payment made to the Payment Distributor (PD) and, if so, this would result in the Money Adviser’s fee being reduced by the same amount as paid to the PD (normally around 5p in the £).
The remaining amounts are distributed amongst all creditors on a pro rata basis and a successfully completed DPP deems all debts to be repaid in full.
The fees and expenses of your DPP will be explained in detail in your DAS paperwork. You do not have to pay additional fees other than those you agree to and if you do not proceed with a solution after seeking advice then there is no charge for our services.
This means that at no point during the duration of your DAS will you be liable to pay ongoing fees, 100% of your repayment amount is used to make payments to your debt. This includes the free DAS advice that you receive even before you even apply. See Trust Deed Scotland fees for more information.