Penalties for defaulters likely

Failure to pay maintenance for kids could lead to blacklisting

MAINTENANCE defaulters face being blacklisted if proposed new regulations in the National Credit Act come into effect. The new draft affordability guidelines adopted by the National Credit Regulator (NCR) last week aims to block those in arrears with their maintenance payments from accessing credit – for a period of up to five years.

According to the new draft regulations, published in the Government Gazette last Friday, outstand- ing maintenance orders could also be used for the purpose of creditscoring, or assessment.

The public has 30 days to comment on the amended National Credit Regulator Bill before it is approved for tabling in parliament by Trade and Industry Minister Rob Davies.

The move has been roundly welcomed by other government departments involved in defending and upholding children’s rights and by the official opposition, the DA.

Justice Department spokesman Mthunzi Mhaga said the new regu- lations would strengthen the government’s crackdown on maintenance defaulters.

The department manages the payments of child maintenance through the courts.

Mhaga said the reading of the bill would change, so prosecutors would be obliged to submit the names of maintenance defaulters to the credit bureaux.

In terms of the draft regulations contained in the amendment bill:

ý Maintenance defaults will stay on a person’s credit record for up to five years, or until a court rescinds a default judgment;

ý Maintenance payments will be included in all credit affordability assessments when applying for new loans: and

ý Those seeking loans will have to declare whether they have any maintenance default judgments.

Family Law Clinic founder Rob Green said the problem of maintenance defaulters was serious, with the Western Cape and Gauteng having the highest numbers.

“There are many facets to the problem, but the bottom line is both men and women are not taking re- sponsibility for their children,” Green said.

According to 2011 SA Institute of Race Relations statistics, about nine million children grew up in single-parent homes.

Social Development Minister Bathabile Dlamini’s spokesman, Lumka Oliphant, said the new draft regulations were not about catching men or fathers but “about the responsibility of both parents in raising their children”.

The DA, which has been lobbying for defaulters to be blacklisted, has welcomed the regulations.

DA MP Denise Robinson said the party’s interaction with the NCR had brought about the change.

She said maintenance courts endured enormous bottlenecks, and were hobbled by lack of training and shortages of staff.

Divorce attorney Anton Neethling said: “Blacklisting will help. The stricter the enforcement, the more readily people pay.

“It’s as simple as that.”