The Child Maintenance Service and Child Support Agency has said that it will start to report liability orders to credit reference agencies from next year, which means that non-resident parents that fail to keep up with their repayments may find that it negatively impacts their credit score, and could prevent them from getting credit such as mortgages and car loans in the future.

This move is only expected to be used when a person is served with a liability order, although it has also been stated that parents who make regular payments on time, every time, will be able to request that their payment information is also shared. This may help those parents who pay the amount expected every month, to be able to improve their credit score.

It is believed that the move is being used in the hope of acting as a deterrent to stop people from choosing to avoid making the payments that they owe, although it will also be seen as a punishment too, while proffering greater information about a person’s payment and financial history to the agencies that most credit companies and underwriters rely on when determining risk and deciding whether a person is worthy of receiving credit.

Approximately 85% of parents comply with the orders that they are given by the CSA, meaning that they make the payments expected of them, but this does leave 15% that do not comply. In some cases, this may mean late payments, but in other instances, it means that the non-resident parent is avoiding making any payments at all. Payments required by the CSA are legally enforceable, and this means that the organisation can seek and receive a liability order, to be issued to the non-payer.

Once a non-liability order has been issued, it means that court and eventually bailiff action may be taken against the individual, and once the new rules are passed, it also means that the parent that does not make the expected payments will take a hit on their credit record.