DAGCAS
Money Advice Team
Money problems can happen to anyone!
The sooner you face the problem, the easier it will be to start to reach to reach a solution.
Dumfries and Galloway Citizens Advice Service is here to help with any debt or other problems.
We provide free, independent, impartial and confidential advice to assist clients with financial problems.
Our Money Advice Workers will assist with
Debt Counselling
Maximisation of Income
Assessment of Income and Expenditure
Negotiation with Creditors
Advice on Sequestration and Other Options
Court Representation
Debt Counselling
Our debt advisers are trained to listen to the client and to ascertain the extent of his/her finanical circumstances. The adviser will explore the client's problems and identify what debts the client has.
Maximisation of Income
This involves the adviser checking that the client is claiming and receiving all income to which they are entitled. Maximising income will include checking the client is getting the correct rate of pay (does the rate of pay meet the minimum wage requirements), tax codes are correct and claiming Working Tax Credit. The adviser will also check that the client is claiming all benefits for which s/he may be eligible.
Assessment of Income and Expenditure
The adviser will review the client's Income and Expenditure Statement and look realistically at essential out-goings, such as food, clothing etc, whilst taking account of an indivudal's needs.
Priority debts such as housing, council tax and fuel are identified as items of essential expenditure thereby allowing an assessment of the client's disposable income for distribution amongst creditors.
Negotiation With Creditors
At this stage, we will begin negotiating with creditors. Creditors are advised of the client's problems and requested to suspend interst pending a fulll review of the client's financial situation.
Court Representation
We offer court representation where lay representation is permitted by law. This includes clients defending civil actions and applying for Time To Pay Directions or Orders.
Options
The Money Advice Worker will discuss the options you may have, taking into consideration your needs.
Possible options include:
Reduced Payments - If you have available income after paying your essential outgoings, a Money Advice Worker can negotiate with your creditors to agree afforable reduced payments.
Debt Arrangment Scheme (DAS) - This is a new more formal scheme introduced by the Scottish Executive. DAS can help you pay your debts in a managed way. The scheme is free for those paying under the Debt Payment Programme (DPP). A DPP is an agreement that allows you to pay off your creditors over a period of time. Under DAS a single regular payment is made to an approved payment distributor. If you keep to the agreed payments, your creditors cannot take any enforcement action against you.
Protected Trust Deed - A protected trust deed is a voluntary arrangement which is more informal than sequestration, because it does not go through the courts. If a client enters into a protected trust deed his/her assets and property will be transferred to a trustee who will then manage the client's financial affairs with the aim of paying the client's creditors as much as possible of the debt owed to them.
Sequestration (Bankruptcy) - This is a process where a client is formally declared bankrupt. A client can apply for his/her own sequestration or a creditor can apply to court for the client to be declared bankrupt.
News (17 August 2010)
Debtors should be very wary about adverts from companies which claim that they can get the debtor's loans and credit card debts written off. These companies are licensed through the Ministry of Justice which only has jurisdiction in England and Wales. These companies are unregulated when operating in Scotland and therefore debtor's who sign up to them do not have any protection.
These companies usually request a copy of the agreement from the lender. If the lender does not provide the copy within a required time then the debt is unenforceable through the courts until this breach is remedied. When the lender has provided the copy of the agreement, then the lender can commence court action. A recent court case (Carey and others v HSBC Bank Plc and others 2009) decreed that the copy of the agreement does not need to be a photocopy of the original agreement, instead it can be a reconstituted copy. The information which must be provided on this copy is the name and address of the debtor, the name and address of the creditor, cancellation clause applicable to the executred agreement and the terms and conditions of the agreement.
The companies charge a substantial fee for their "services". However, if a debtor thinks that there is a problem with an agreement, they can obtain a copy by request from the creditor by paying a fee of £1.00. The debtor can then obtain free advice from Dumfries & Galloway Citizen Advice to check any issues.
Many of these claims management companies also state that they can reclaim Payment Protection Insurance which has been mis-sold to the debtor. Their normal charge for this service will be a percentage of any amount recovered, which could be a substantial sum. If a debtor does think that they have been mis-sold Payment Protection Insurance then the debtor can either receive free assistance from Dumfries & Galloway Citizens Advice Service or they can obtain the Financial Ombudsman Service's consumer fact sheet which will provide them with guidance on how to make the claim (www.financial-ombudsman.org.uk).