DEDUCTION ORDERS.

Deduction orders are the new powers given to CMEC which we understand are to be introduced in the next few weeks.    Deduction orders will allow CMEC to take monies from bank accounts and building society accounts, either as a regular deduction or as a lump sum.   (note: there is no requirement for them to apply to court to take such action)

From initial consultation papers, these orders will be used against Joint accounts as well as those in the sole name of the NRP.   However, the latest information provided to us has not made reference to joint accounts being accessed.   Updates will be noted as soon as more information is gained.

Key Facts :

1.  These orders should be used only when the NRP has demonstrated a failure to pay maintenance by any other method.

2.   The intention is to use regular Deduction Orders against bank accounts, and lump sum Deduction Orders against building society/savings accounts. CMEC has the discretion to decide which type of account will be served with the Deduction Order.

3.  There will be appeal rights at various stages of the Deduction Order being served, although there are no specific details about what the appeal rights will include.  If they reflect the appeal rights of a Deduction from Earnings Order, then essentially they are futile.

4. The NRP may request a review of the order if circumstances change.  CMEC have the right to refuse this request although again appeal rights would be offered against that refusal decision.

5.  The Deduction Order will continue until any appeal is decided upon

6.  Quote “Deduction Orders are expected to play an important role in reducing the number of non resident parents able to evade their responsibilities and in turn reduce the total amount of debt that is owed”   It would be welcome news if this was witnessed in reality.  It will be interesting to gain feedback from clients as to whether these Deduction Orders are targeted at paying clients rather than being of use to our PWC’s that still receive no money.  Time will tell!

7.  NRPs will be given the opportunity to discuss alternative payment methods at any time during the process.

8.  This scheme is going to be piloted on a small number of cases initially.  Once CMEC are assured that the process is working sufficiently, and CMEC officers are handling the process satisfactorily, the scheme will be rolled out to cover all areas.   The process will be reviewed after one year of operation.