Old CSA debt and the Limitation Act

millwall34

You great people helped me out before with the CSA and a lengthy tribunal later we attained a decisive victory and I’m here for your help again.

I have another problem for a member of staff working at our pub, He had just discovered a big CSA debt somewhat out of the blue from a bailiff calling at pub wanting me to hand over the grand sum of £26,000-odd just like that!

I called our solicitor who did the paperwork to void the liability order under section 14 of the Magistrates Courts Act 1980- but it still leaves the now-unenforceable debt (except an AOE)-Digging around, I think the Limitation Act might apply because the debt was created more than six years ago.

Can anybody point me to some rules whether or not the Limitation Act applies to a child support liability, - or whether a new liability order can be granted on a debt that is out of time?

Crellow4

The Statute of Limitations will include CSA debt but does not preclude the use of DEO if you are working. So the debt can be collected from earnings but 'other' enforcement routes eg Baliff, a Deduction Orders, Order for Sale etc cannot be utilised - unless a Liability Order has been obtained as this secures the debt.

millwall34

Can anyone give a legislation quote on whether or not a CSA debt more than six years can be revived?

Darna

Hello Millwall, I've been going through the legislation this afternoon but there is so much to go through, I'm trying to find the answer to this myself too -out of interest

GobbledyGook

I can't give you any laws or anything like that. However my deceased father owed a lot of money to the CSA and when he died it all had to be sorted out. The debt was run up considerably more than six years ago (myself and my brother were his only children).

Apologies if that is not relevant to you at all.

DUTR

GobbledyGook wrote: »

I can't give you any laws or anything like that. However my deceased father owed a lot of money to the CSA and when he died it all had to be sorted out. The debt was run up considerably more than six years ago (myself and my brother were his only children).

Apologies if that is not relevant to you at all.

Some debts remain for 6 years but that is 6 years to lodge a claim, some are for 6 years to settle and some are exempt from that rule, the CSA falls under the latter as does tax liability.

millwall34

Hi Darna can you let me know if you find any CSA regulation that rebukes the Limitation act on an unsecured (no liability order) debt?

Crellow4

https://forums.moneysavingexpert.com/discussion/1349215

Crellow4

The relevent law you should look up is 'The Child Support [Collection and Enforcment] Regulations 1992, ammended 2006.

Regulation 28 [2] and [2A]

amendment of the Child Support (Collection and Enforcement) Regulations 1992

3.—(1) The Child Support (Collection and Enforcement) Regulations 1992(1) are amended as follows.

(2) In regulation 3 (method of payment)—

(a)after paragraph (1)(f) add—

“(g)by credit card;

(h)by a voluntary deduction from earnings arrangement.”;

(b)for paragraph (1A) substitute—

“(1A) In paragraph (1)—

(a)“debit card” means a card, operating as a substitute for a cheque, that can be used to obtain cash or to make a payment at a point of sale whereby the card holder’s bank or building society account is debited without deferment of payment;

(b)“credit card” means a card which is a credit-token within the meaning of section 14(1)(b) of the Consumer Credit Act 1974(2);

(c)“voluntary deduction from earnings arrangement” means an arrangement under which the liable person and his employer agree that payments of child support maintenance are to be deducted from the liable person’s earnings and paid to the Secretary of State.”.

(3) In regulation 11(2) (protected earnings proportion) for the words from “as calculated” to the end substitute—

“as calculated—
(a)at the date of the current maintenance calculation; or
(b)if the deduction from earnings order relates only to arrears of child support maintenance, at the date on which the order is made or varied.”.
(4) In regulation 26 (liability orders – extent of Part IV) for “regulation 29(2)” substitute “regulations 29(2) and 35(5)”.

(5) In regulation 28 (application for a liability order)—

(a)for paragraph (2) substitute—

“(2) Subject to paragraph (2A), there is no period of limitation in relation to an application under paragraph (1).”;

(b)after paragraph (2) insert—

“(2A) An application under paragraph (1) may not be instituted in respect of an amount payment of which became due on or before 12th July 2000.”.

millwall34

Thanks, for the interesting thread and its quite detailed.

It confirms two things:

1. The CSA will treat the debt as valid even without a liability (DEO etc) order but cannot use enforcement measures requiring a liability order (bailiff prison etc)

2. The law changed about 2003 altering the impact of the Limitation Act but that legislation is not quoted by any of the contributors,

Can anyone point to me to authority whether a liability order can or cannot be applied for on a debt more than six years?

HoneyNutLoop

To build on Crellows reply, the CSA has never been bound by the Limitations Act; probably the simplest reference to corroborate:
http://www.familylore.co.uk/2010/04/cmec-v-mitchell-child-support-and.html

What it was bound by was the regulation Crellow referenced, which in it's original incarnation said:
"Application for a liability order
28. (1) An application for a liability order shall be by way of complaint for an order to the magistrates' court having jurisdiction in the area in which the liable person resides.
(2) An application under paragraph (1) may not be instituted more than 6 years after the day on which payment of the amount in question became due.
(3) A warrant shall not be issued under section 55(2) of the Magistrates' Courts Act 1980(1) in any proceedings under this regulation."
http://www.legislation.gov.uk/uksi/1992/1989/regulation/28/made

This regulation was amended by the Child Support (Miscellaneous Amendments) Regulations 2006 to the wording Crellow has quoted.
http://www.legislation.gov.uk/uksi/2006/1520/regulation/3/made

The explanatory note makes clear:
Regulation 3 makes a number of amendments to the Child Support (Collection and Enforcement) Regulations 1992 (S.I.1992/1989). First, it extends the range of arrangements for collection of child support by adding payment by credit card and voluntary deduction from earnings arrangements (paragraph (2)). Secondly, it provides a basis for calculating the protected earnings proportion in relation to a deduction from earnings order which relates only to arrears of child support maintenance (paragraph (3)). Thirdly, it extends to Scotland the provision for determining the costs in relation to a disqualification from driving order (paragraph 4). Lastly, it removes the 6 year limitation period for an application for a liability order, but only in relation to amounts that became due after 12th July 2000 (that is amounts which were not already time barred at the commencement of these Regulations) (paragraph (5)).
http://www.legislation.gov.uk/uksi/2006/1520/note/made

So yes, the CSA are able to apply for a liability order for a debt that is more than 6 years old, but not debt that first became due prior to 12/07/2000.