Debt - Government calls off new debt plan - 02/07/2009

The Scottish Government has backed down over changes that were planned for a programme that helps those struggling to pay back their stacking debts.

Proposals to alter the Debt Arrangement Scheme (DAS) had been criticised by money advice groups.

As a result Liberal Democrat MSP Robert Brown, had attempted to try to block the changes- which were due to take place from the start of July.

The DAS was introduced in 2004 by the Scottish Executive to help people with various debts. Under the proposal, those requiring aid must first meet an approved money adviser, who will put forward a debt-payment plan to creditors.

The requested changes would have meant people would have been able to apply to have a debt payment plan without first having had money advice.

Community Safety Minister Fergus Ewing stated: “Given the concerns raised and given the complexity of the issues, the appropriate thing would be to have over the summer formal consultation on this particular issue about how we improve Das.”

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