The Committee took evidence on the Debt Arrangement Scheme (Scotland) Amendment Regulations 2019 [draft] from Jamie Hepburn, Minister for Business, Fair Work and Skills at its meeting on 17 September 2019. The Official Report is available on the Committee's website.

The Regulations were laid on 07 June 2019 and provide for a scheme for the repayment of debts in Scotland (“the DAS Scheme”). DAS is one of the formal, statutory schemes for dealing with problem debt available to debtors in Scotland. Since its inception DAS has been administered by the Accountant in Bankruptcy (AiB). The Regulations provide for the procedure and forms in respect of a repayment arrangement under the scheme, which is described as a debt payment programme (“DPP”).

The scheme is open to both individual debtors and to legal persons and other entities (where it is known as “Business DAS”). The Regulations amend the DAS Regulations to implement changes to the way in which payments distributors (“PDs”) are approved and to the definition of continuing money advisers (“CMAs”). The Regulations also make changes to the fees which may be charged by PDs and CMAs acting in a DPP where the debtor is an individual.

At its meeting on 25 June, the Committee agreed to take evidence from stakeholders and the AiB ahead of formal consideration of the instrument. The Committee also sought written evidence which can be read here. The Committee took oral evidence from money advisers, ICAS and credit unions on 3 September and from the AiB on 10 September.

During consideration of the evidence, the Committee agreed to write to the Scottish Government to seek further clarification on Regulation 4. The Committee wrote to the Minister for Business, Fair Work and Skills on 6 September and received a response on 9 September.

The Committee wrote to the Minister again on 11 September to ask that the Scottish Government consider amending Regulation 4 (by withdrawing and relaying the instrument). The Minister responded on 13 September.

The AiB wrote to the Committee on 13 September to provide a note on the recent consultation on Protected Trust Deeds. He also made a correction to the information given during the evidence session on 10 September.

The Delegated Powers and Law Reform Committee considered the Regulations at its meeting on 18 June and had no issues to report.

Following evidence, the Minister for Business, Fair Work and Skills moved motion S5M-17827—

That the Economy, Energy and Fair Work Committee recommends that the Debt Arrangement Scheme (Scotland) Amendment Regulations 2019 [draft] be approved.

Committee members raised a number of issues during consideration of evidence and the debate of the Regulations. The Committee has agreed to follow up this report with a letter to the Minister covering several issues raised during evidence.