News In Focus
24 June 2009
Government drops plans to change debt scheme
Community Safety Minister Fergus Ewing has revoked the order which would have introduced alterations to a scheme set up to help those struggling to pay their debts.
His move came ahead of a Justice Committee hearing at the Scottish Parliament yesterday at which the order would have come under challenge from Liberal Democrat MSP Robert Brown.
Money advice groups had criticised proposals to alter the Debt Arrangement Scheme (DAS), which was introduced in 2004 to help people with multiple debts.
Under DAS, those requiring assistance must first meet an approved money adviser, to put forward a debt-payment plan to creditors.
The proposed changes would have meant people would have been able to apply to have a debt payment plan without first having had money advice.
Mr Ewing said: "It would be the wisest course and the sensible course to have, as a matter of urgency, a series of further discussions and further engagement in order to discuss some of the issues they have raised.”