Child maintenance dodgers could be declined credit
The government wants to be able to share information with credit agencies, which will then be used by banks as back-up to determine whether they offer cash to the customer.
If that sounds a bit hardcore, even a missed or late payment on a mobile phone bill can be enough to cause somebody to be declined credit.
Child maintenance minister Steve Webb said: “For too long, a minority of absent parents have got away with failing to pay maintenance, leaving families without that financial support,”
Naturally the government being the government, they expect this move will also act as a deterrent to others from stopping child maintenance payments in the future.
“I would hope that we see this power used very little, because the deterrent effect of a possible negative mark on a person’s credit rating will convince those who have previously failed to pay towards their children’s upbringing to do the right thing.”
The record of a missed payment won't appear on a credit record until a liability order is made against them.
TOPICS: Credit Cards