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eDEN User Guide

Creating and Submitting a Variation Application as a

Money Adviser

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Contents 1. Introduction .......................................................................................................... 3

2. Log In .................................................................................................................... 4

3. Variations .............................................................................................................. 4

4. Starting a Variation Application .......................................................................... 4

4.1 User already in DPP ....................................................................................... 4

5. Creating Application ............................................................................................ 5

6. Debt Change Variation ......................................................................................... 7

6.1 Correcting the starting balance .................................................................... 7

6.2 Add New Debt ................................................................................................. 8

6.3 Remove Debt .................................................................................................. 9

7. Payment Break ................................................................................................... 10

8. Partial Settlement ............................................................................................... 11

9. Contribution Change ......................................................................................... 12

10. Essential Credit ............................................................................................... 12

11. Discretionary Condition .................................................................................. 13

11.1 Amending a Discretionary Condition ...................................................... 13

11.2 Removing a Discretionary Condition ...................................................... 14

11.3 Adding a New Discretionary Condition ................................................... 14

11.4 Continuing a Discretionary Condition application ................................. 15

12. Composition .................................................................................................... 15

13. Completing the Variation Application ............................................................ 15

14. Returned Variation Applications .................................................................... 19

15. Issued Variation Applications ........................................................................ 19

16. Variation Proposals ......................................................................................... 20

17. Withdraw Variation .......................................................................................... 22

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1. Introduction Debt Arrangement Scheme (DAS) is a government-run debt management tool which allows debtors to repay their debts through a Debt Payment Programme (DPP). The DPP allows debtors to pay off their debts over an extended period of time while giving them protection from creditors taking action against them to recover the debt. The DPP can last for any reasonable length of time. If approved, a DPP will freeze all interest, fees and charges on the debt included. The parties in the DPP are:

The debtor

The creditor(s)

The Money Adviser (or Continuing Money Adviser if administering the case throughout the programme)

The Payments Distributor

The DAS Administrator. This User Guide is aimed at Money Advisers who are using the Electronic DAS Enhanced Network (eDEN). Each organisation should have one user who is listed as a Manager, who has responsibility for giving their colleagues General User or Read Only User rights in eDEN. This guidance is aimed at General Users and Managers. This User Guide is a manual for eDEN, not a comprehensive guide to all responsibilities of users in a DPP. This guide should be read in conjunction with:

1. Individual DAS – Guidance for Continuing Money Advisers 2. Guidance on DAS for Money Advisers

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2. Log In If you have registered for access to eDEN, you are able to log in and start using the system. If you have not yet registered, select to register from the logon page of eDEN (see eDEN general user guide).

3. Variations At any point after approval of a DPP, a variation application may be submitted by the debtor, a creditor included in the DPP, a creditor that has had their debt omitted from the DPP or the money adviser. The following variation applications can be submitted:

Payment Break;

Debt Change;

Partial Settlement;

Contribution Change;

Essential Credit;

Discretionary Condition and

Composition (only available once the composition criteria has been met) For any debt change variation, proof of the starting balance at the date the personal application was issued to creditors will be required, this date can be found within the DPP Details section of a case or within the DAS Register.

4. Starting a Variation Application There are several ways in which a variation application can be created by any user with access to eDEN. 4.1 User already in DPP If you are the money adviser for the debtor(s) then you are a user already in the DPP. To create a variation for a case that you have access to, select the case from your case list, this opens the DPP Details section. In the side menu on the left, you have an option to create a variation:

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Also within the DPP Details, there is a Variation section where you are able to select Create:

5. Creating Application Once you have selected to create the application, you will be able to select the type of variation the you are applying for. Multiple types can be selected:

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You may need to click on the arrow at the right hand side of the drop down selection to collapse the list so you can completely view the grounds for the type(s) of variation you have selected.

All grounds relative to the type(s) of variation selected will appear:

If you have selected the incorrect ‘Type’ you can click on the small white cross at the top right of the ‘Grounds’ box that has appeared on your screen. This will remove this selection:

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Scroll down the page and the capacity in which you are applying for the Variation will be pre-populated for you.

Scroll past the ‘Select Creditors’ box if shown.

Confirm that your variation application meets one of the regulation grounds by checking the box and then select Create Variation at the bottom of the page:

What you see next will depend on the type of variation you have selected.

6. Debt Change Variation A debt change variation should be submitted where one or more of the statements below applies:

the level of debt at the start of the DPP is incorrect;

the remaining debt has been written off;

where the debt has reduced due to creditor actions (if a debtor pays the creditor out with the DPP to reduce the balance then this will start revocation action);

the debt was omitted from the programme;

and where a debt due was not quantifiable at the time of the original application but the debt has now been quantified and due for payment.

6.1 Correcting the starting balance If the starting balance of the debt is incorrect and your variation is to change this, within the Debts section update the ‘Proposed Debt Amount’ field with the correct starting balance and click ‘Next’:

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To complete the variation, please see Section 13. Completing the Variation Application. 6.2 Add New Debt If the debt was omitted from the original application and the variation is to add the debt in, select Add New Debt:

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Update the creditor reference, debt type and select the creditor from the Creditor Name List:

Confirm the amount owed and sort code and account number (if unknown, ‘0’ can be added to these fields’) and then scroll down and select ‘Add Debt’ at the bottom of the page:

This will take you back to the ‘Debts’ screen. Click ‘Next’ at the bottom right hand side of the screen. To complete the variation, please see Section 13. Completing the Variation Application. 6.3 Remove Debt If the remaining debt balance has been written off and the variation is to remove the debt from the DPP, select Delete for the relevant debt:

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And confirm that the debt should be deleted:

To continue with a debt change application see Section 13. Completing the Variation Application.

7. Payment Break A payment break application should be applied for where the debtor wishes to defer payments for a period not exceeding 6 months. The term of the DPP will be extended for a period equal to the period of deferment. In order to qualify for a payment break, the debtor(s) disposable income must have dropped by 50% or more, due to at least one of the following circumstances:

A period of unemployment or change in employment;

A period of leave from employment for maternity, paternity, adoption or to care for a dependant;

A period of illness;

Divorce, dissolution of a civil partnership or separation from a person whom the debtor is married or the civil partner;

Death of a person with whom the debtor shared care (financial responsibilities or otherwise);

A reduction in social security benefits or tax credits (or both).

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A full financial statement should be updated for every payment break application to demonstrate the reduction in surplus income. Once you have selected to create the application, confirm the length of the payment break by number of instalments (number of instalments must not total more than 6 months) and confirm the start date of the break then select Save.

To continue with a payment break application, you need to update the financial statement and provide supporting information. See Section 13. Completing the Variation Application.

8. Partial Settlement A partial settlement variation is for where the debtors wish to make a partial settlement offers to creditors in exchange for releasing them from their DPP early. This is NOT an offer of composition under regulation 46 A - 46 D under Part 9A of the Debt Arrangement Scheme (Scotland) Regulations 2011 as amended by the Debt Arrangement Scheme (Scotland) Amendment Regulations 2013 (DAS Regulations). It is an ad hoc voluntary arrangement agreed between the debtor and their creditors rather than a process covered by the Regulations. Once you have selected to create the application, confirm the total lump sum amount that the debtor has to offer across all creditors and select save:

To continue with the partial settlement application, you need to update any supporting information and then see Section 13. Completing the Variation Application. The proposal will generate to creditor. Any creditor that rejects the partial settlement proposal will remain in the programme.

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At the end of the proposal period, the payments distributor will be provided with a total amount and a breakdown of all the creditors that have accepted so they are able to distribute the money and the paid creditors will be removed from the DPP.

9. Contribution Change The contribution change variation should be applied for when the debtor is proposing to change their instalment amount or frequency. Once you have selected to create the application, confirm the new debtor proposal amount and frequency then select save:

To continue with the contribution change application, you need to update the financial statement and provide any supporting information. See Section 13. Completing the Variation Application.

10. Essential Credit Where the debtor requires credit to meet an essential requirement, above the limit allowed by the regulations, then an essential credit variation should be submitted. A debtor is allowed credit up to a limit of £2000 without applying for a variation, under the current legislation. The debtor is also allowed to apply for and obtain credit without a variation in the following circumstances:

Further credit as part of a cyclical loan arrangement which was in place prior to approval of the DPP;

Trade credit incurred by the debtor in the ordinary course of a business;

Credit for an emergency repair (emergency repair is one required to maintain a dwellinghouse occupied by the debtor in wind and water tight condition; maintain in reasonable working order any item that is not a non-essential asset; or to maintain a vehicle required by the debtor for travelling to work, or other essential purpose;

Credit for reasonable funeral expenses in respect of an immediate family member.

If the credit required by the debtor is higher than the allowed limit and out with one of the reasons above then a variation application should be submitted.

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Once you have selected to create the application, confirm the amount of credit being applied for and confirm the reason for the credit, then select save:

To continue with the essential credit application, update the financial statement if there are any changes and provide any supporting information. See Section 13. Completing the Variation Application.

11. Discretionary Condition If a discretionary condition which was set upon approval of the DPP requires to be amended, extended or removed then a variation application should be submitted. Or, if another variation type has been selected, like contribution change to reduce payments for a short term, then the discretionary condition variation should also be selected in order to add a new discretionary condition. Once you have selected to create the application, any discretionary condition already on the case will appear. You are able to amend the condition that has appeared, delete this or add a new one. 11.1 Amending a Discretionary Condition To amend a discretionary condition, delete the content of the relevant field and replace it with the new information and then select save:

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11.2 Removing a Discretionary Condition To remove a discretionary condition, select the Delete button ‘-‘ at the side of the condition and then select save:

11.3 Adding a New Discretionary Condition To add a new discretionary condition, select the ‘+’ at the bottom of the box:

And then complete the details and select Save:

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11.4 Continuing a Discretionary Condition application To continue with the discretionary condition application, update the financial statement if there are any changes and provide any supporting information. See Section 13. Completing the Variation Application.

12. Composition A composition variation will become available to create once 12 years have passed since approval of the original application and 70% of the total amount of debt due under the programme has been paid. The composition proposal will be issued to creditors asking if they are willing to stop receiving payments for the debt, if they do not respond or if they agree to the proposal, their debt will be removed. Any creditors that remain in the DPP will have the instalment amount split between them on a pro-rata basis.

13. Completing the Variation Application For the following variation types, the financial statement will be available to update:

Payment Break;

Contribution Change;

Essential Credit and

Discretionary Condition.

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The financial statement will pre-populate with that financial statement on the personal application, or the most recent variation with a financial statement. Check all details are correct within each section or update any amount or frequency:

Once you have completed all of the Financial Statement information you will be taken to the ‘Supporting information’ screen. You can also access this screen by selecting ‘Supporting Information’ from the side menu:

Add any details relevant to the application to the ‘Supporting Information’ field and complete the ‘Reason for Variation’ (these are visible to all parties in the DPP):

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You can also provide any relevant documentation to support the application by selecting the Documents tab on the page (highlighted by the black arrow) and then clicking on Add Document:

Select a document type from the dropdown menu (Variation Supporting Information is at the bottom of the list) and click to upload the document: If you only want AiB and your own organisation to see the document, select the ‘AiB Only’ tick box at the bottom of the page.

Once all of the supporting information and documentation has been provided, select ‘Next’ from the bottom of the page:

You will then be taken to the ‘Submit’ screen. If there is any additional supporting information to be added, you can do so here. Read the declaration, and if you agree with the statements presented on the screen, select ‘Yes’ to agree and then select ‘Submit’ at the bottom of the page:

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All debt change variations will be submitted to the DAS Team, who will check and issue the proposals, so the Status of the variation will show as ‘Submitted’:

If all required information has been provided and there is no other variation that has been proposed but not yet decided, then the proposals will be generated and the application will be issued.

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14. Returned Variation Applications If any further information is required, the DAS Team will return the application to you, it will appear within the task list on your homepage:

Once the returned variation has been selected from the task list the Returned Reason can be viewed on the variation details screen:

Update the relevant details and then resubmit the variation application. 15. Issued Variation Applications Any Variations that you have submitted which have been issued by AiB, or went straight to issued when submitted, can be found by carrying out a search. Click on ‘Cases’ at the top of the screen and select ‘Search Variations’:

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Go to ‘Statuses’ and select ‘Issued’. You can also choose to search by ‘Type’, or within date ranges for ‘Created On’ Issued On’ and ‘Approved On’. The results will be displayed on the screen and these can also be exported.

16. Variation Proposals Any Variation that has been issued which requires you to vote on behalf of a creditor can be found searched for in the same way as detailed above at Section 15. Or if you have the case reference you can type this into the Search box open the case, expand the variation section and select the relevant variation:

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To cast the vote, once you are in the case and have selected the relevant variation, click on ‘View Proposal’ from the right hand menu:

Click ‘View’ on the debt you will be voting on:

On the right hand menu you should select ‘Vote’:

Scroll to the bottom of the screen and select one of the options from the drop down to either ‘Accept’ or ‘Reject’ the proposal. Add in any missing information (such as Sort Code or Account Number) as well as any relevant comments then select ‘Cast Vote’.

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17. Withdraw Variation At any point from creating the application up until the decision is made on it, (i.e. after is has been submitted and proposals issued, but not after the application has been approved or rejected). To withdraw the application, you can find the case you are looking for by selecting ‘Cases’ and then ‘Search Variations’ and carrying out your search with the options available:

Or if you have the case reference you can type this into the Search box open the case, expand the variation section and select the relevant variation:

Once the variation application has opened, the Withdraw option is on the menu down the left hand side:

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Provide the reason for the application being withdrawn and then select ‘Withdraw’:

This will then withdraw the variation application and you will presented with a screen confirming this: