Challenging Child Maintenence Service for 20% collection fees

Cbeauc1982

Hi everyone,

I have recently challenged the Child Maintenance Service against arrears that I disagreed with as I have been paying my daughters mother directly for years.

I received a phone call out of the blue from the CMS one evening claiming I owed £6k in arrears and they wanted me to commit to paying £500 per month there and then. When I refused as they couldn't provide any evidence as this had been passed over from the now defunct Child Support Agency they set up a deduction of earnings order for £468 per month which my employee is obliged to honour.
Not only has this caused me huge embarrassment with my employers I am now being plunged into financial difficulty while I fund an already wealthy lifestyle.
On top of that as this collection process is called collect and pay they are charging me 20% on top of the alleged arrears.
I am currently contesting this with the support of NACSA however what I want to challenge is the 20% they are charging for their collect and pay scheme.

Surely this isn't lawful.

I've done some research and no challenge has been brought to the CMS so they are quite content to carry on doing it. I suppose it mirrors that of the banks until they were forced to refund the charges, PPI etc.

Can anyone advise, or wish to support me, in bringing legal proceedings against the CMS to reclaim these charges and hopefully review their future practices?

da_rule

Unfortunately (for you) it is completely lawful.

Regulation 7 of the Child Support Fees Regulations 2014 sets out that the CMS can charge collection fees and sets the rate at 20%.

So, they are quite content to carry on charging it as the law says not only that they can, but that they have to.

The collection fee isn’t payable if you reach a direct payment agreement with the other parent (and obviously stick to it). If you do reach an agreement then I would recommend bank transfers rather than cash as it is easier to prove that you sent the payment.

hollydays

Cbeauc1982 wrote: »

Hi everyone,

I have recently challenged the Child Maintenance Service against arrears that I disagreed with as I have been paying my daughters mother directly for years.

I received a phone call out of the blue from the CMS one evening claiming I owed £6k in arrears and they wanted me to commit to paying £500 per month there and then. When I refused as they couldn't provide any evidence as this had been passed over from the now defunct Child Support Agency they set up a deduction of earnings order for £468 per month which my employee is obliged to honour.
Not only has this caused me huge embarrassment with my employers I am now being plunged into financial difficulty while I fund an already wealthy lifestyle.
On top of that as this collection process is called collect and pay they are charging me 20% on top of the alleged arrears.
I am currently contesting this with the support of NACSA however what I want to challenge is the 20% they are charging for their collect and pay scheme.

Surely this isn't lawful.

I've done some research and no challenge has been brought to the CMS so they are quite content to carry on doing it. I suppose it mirrors that of the banks until they were forced to refund the charges, PPI etc.

Can anyone advise, or wish to support me, in bringing legal proceedings against the CMS to reclaim these charges and hopefully review their future practices?

I'd be interested to hear the whole story.
What's your definition of a wealthy lifestyle?

wesleyad

Definitely not a consumer rights issue, would probably be best in the child support subsection of benefits and tax credits

soupy600

You said you've been paying for years so can you not just prove that to them? bank statements etc?

Aylesbury_Duck

soupy600 wrote: »

You said you've been paying for years so can you not just prove that to them? bank statements etc?

I infer that OP hasn't been paying the correct amount and has amassed arrears on top of what he's been paying.

jweb2k

Aylesbury_Duck wrote: »

I infer that OP hasn't been paying the correct amount and has amassed arrears on top of what he's been paying.

The "correct amount" is surely what has been agreed upon by both parties. There is no arrears on top of this.

LilElvis

jweb2k wrote: »

The "correct amount" is surely what has been agreed upon by both parties. There is no arrears on top of this.

For "correct amount" perhaps interpret as "minimum amount". The State clearly believes that there is a minimum contribution payable, dependent on earnings and personal circumstances - they even have an easy, accessible calculator in order to establish the amount due.

Ness2710

Hi we are now up against this ourselves. Letters from CSA and CMS. Have you solved your issue?