Law Articles

Non-payment of child maintenance may damage credit rating 15/11/2014

Parents who breach liability orders requiring them to pay child maintenance risk having their credit rating affected from next year.

The Department of Work and Pensions (DWP) has sought parliamentary approval for the Child Maintenance Service (CMS) to begin sharing certain payment records with credit reference agencies from March 2015.

The result of this is that arrears for child maintenance will have the same effect on the defaulters’ credit rating as other debts. This can mean that applications for various forms of financial credit such as loans, mortgages, credit cards, hire purchase agreements and mobile phones could be refused.

This type of measure will typically be used as a last resort when all other measures have been taken to encourage parties to make payment.

The flip side of this proposed measure is that non-resident parents with a good record of child maintenance payments may be able to use this information to boost their credit rating.

Statistically 86.2% of existing CSA clients are compliant and these new measures are aimed at the small minority who do not comply.

For further information and advice on this issue, and other family law issues, please contact us for a free initial consultation on 01992 306 616 or 0207 956 2740 or email us.

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Manor Law Ltd, trading as Manor Law Family Solicitors, is a registered company in England and Wales - number 7977350, and is authorised and regulated by the Solicitors Regulation Authority - Hertford office SRA number 567506 and City of London office SRA number 568637. Copyright © Manor Law, 2016. All rights reserved.
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