Under new laws suggested by the Department of Work and Pensions, any arrears built up in Child Maintenance payments will have the same effect on credit rating as other debts.
This is suggested to come into effect in March 2015, subject to Parliamentary approval.
If the new law is approved, the Child Maintenance Service and Child Support Agency, will share certain information about client’s payments records with credit reference agencies.
Whilst compliance among CSA clients reached a high of 86.2% in June 2014, this new law is aimed at the minority who fail to make payments.
If a non-resident parent fails to pay maintenance, the Child Support Agency and Child Maintenance Service, will use a number of methods in order to encourage the payment to be made. However, if these methods are exhausted and the non-resident parent continues not to pay, a liability order may be made against them. If this occurs, the Child Support Agency or Child Maintenance Service will share information in respect of the individual who has failed to pay.
The new measure is expected to help get more money to children and families who need it, by having a deterrent effect for those who chose to evade maintenance payments. This is because a poor credit rating can lead to people being refused loans, mortgages, credit cards, mobile phone contracts and other forms of financial credit and therefore the risk of this may encourage non-resident parents to pay child maintenance.
The new law will also assist those who regularly pay their maintenance payments, by allowing them to make a request for their information to be shared if they think it will improve their credit rating.
Family Law Solicitors Eastbourne, Hailsham and Polegate
If you require further advice in relation to children and maintenance matters please contact our Family Department for a free 30 minute appointment to discuss your circumstances and receive preliminary advice from one of our experienced Family Law Solicitors.
Eastbourne: 01323 727321
Hailsham: 01323 841481
Polegate: 01323 487051