CSA changes could punish borrowers

Sarah Davidson

November 21, 2014

Subject to parliamentary approval, from March 2015 late Child Support Agency (CSA) payments will be posted onto an individual’s credit file alongside other financial agreements like their mortgage lender and mobile phone supplier.

Clothier said: “Both sides in a divorce should be aware that after March next year, CSA must be maintained on time otherwise the whole financial settlement issue could be compromised.

“Those clients who pay their CSA late, and especially several months late, may well face a mortgage refusal.

“This CSA development could have a very significant impact on those who are sloppy or even deliberate in their attitude towards the regular financial support of their children.

“Credit records generally last for up to seven years and lenders usually focus on the most recent history, so it’s essential for borrowers to keep up to date with payments.”

And he warned: “What about the stigma?

“This could potentially impact other areas of a person’s life.

“For example some lenders are taking a softer and more flexible approach to poor credit records resulting from disputes with mobile phone companies because let’s be honest most of us have had some sort of run in with a mobile phone company.

“Not so likely with CSA payments.

“And prospective employers for example, who often now credit check job applicants, may be loath to take on someone who is seen not to support their children adequately.”

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