PART 1Financial Guidance etc
Objectives and functions of the single financial guidance body
I16Debt respite scheme: advice to the Secretary of State
1
The Secretary of State must, within three months of the establishment of the single financial guidance body, seek advice from the body on the establishment of a debt respite scheme.
2
A debt respite scheme is a scheme designed to do one or more of the following—
a
protect individuals in debt from the accrual of further interest or charges on their debts during the period specified by the scheme,
b
protect individuals in debt from enforcement action from their creditors during that period, and
c
help individuals in debt F1and their creditors to devise a realistic plan for the repayment of some or all of the debts.
3
The matters on which the Secretary of State may seek advice include (but are not limited to)—
a
the appropriate person to administer the scheme (and the single financial guidance body may recommend the creation of a new body for this purpose);
b
whether the scheme should apply in England only, or whether it should also apply in Wales or Northern Ireland (or both);
c
the scope and design of the scheme, for example—
i
the types of debtors and the types of debts it should cover;
ii
the types of protections it should give;
iii
the time period for which the protections should apply;
iv
what the obligations on debtors and creditors should be during any period for which protections apply, including any period of a repayment plan;
v
the consequences of a failure by a debtor or a creditor to comply with a repayment plan;
d
how the scheme should work, for example—
i
how an application should be made for the protections given by the scheme;
ii
suitable arrangements to keep creditors informed;
iii
whether there should be a central register of persons admitted to the scheme;
e
how the scheme should be implemented.
4
The single financial guidance body must provide the advice sought within 12 months of its establishment.
5
The Secretary of State must publish the advice.