Hi Mark its on the scotdebt.net web page I'll copy the link via the contact form, but I have copied and pasted the section below.

Cheers

It is probable that the money adviser will ask you to waive both current and ongoing interest. The Scottish Executive has stated its hope that all creditors will, as a group and in the normal course of this procees, agree to waiving interest on the basis that it will contribute to the likely success of the DPP.

If you do not waive interest, the money adviser will try and negotiate that you freeze interest or agree a fixed rate for the interest. It is important to note that if a creditor insists on a variable rate of interest no interest can be paid during the DPP because it will be too complex to calculate and factor into creditor payments. Thus, you may find that you will have to pursue the person for the accrued interest when the DPP has finished.

At this stage, neither you nor the individual are committed to a DPP. The money adviser is assessing the options such that a plan of action can be agreed with the individual in the best interests of all parties.

Hi simonpt

I'm wondering how old this advice is as the address for the AIB's office is shown as Edinburgh and they haven't been in edinburgh for several years!

I think this is the position before the amendments to the Act, but am still waiting on clarification.

Mark

Hi simonpt,

Mark is right, this was the position previously but the legislation was amended in the last year or two so that creditors are obliged to freeze interest under the scheme. If somebody successfully repays their debts through a DAS payment plan then creditors cannot come back and demand any interest. However, I believe that if the plan breaks down for some reason before the debts are repaid - eg the debtor doesn't make the payments as promised - and the DAS plan is officially revoked, then the interest which would have been applied can then be demanded by the creditors.

Kevin