Interest now charged on late Maintenance Enforcement payments

Strong Communities
October 1, 2008
Interest now charged on late Maintenance Enforcement payments
4.25 per cent interest rate on all payments not made on time or in full
Edmonton... Starting October 1, people who fail to make their spousal and child support payments on time or in full through Alberta’s Maintenance Enforcement Program will be charged a 4.25 per cent interest rate. The interest charge is designed to encourage people to meet their financial support obligations.

"It’s important for debtors to pay their maintenance on time and in accordance with the terms of their support agreements,” said Justice Minister Alison Redford. “Many families suffer if they don’t receive their maintenance on time and this is another step towards ensuring the children of Alberta are getting their court-ordered support.”

People who are unable to pay maintenance debts in full may contact the Maintenance Enforcement Program to make an alternative payment arrangement. The goal of a payment arrangement is to pay all outstanding balances in a reasonable period of time in addition to paying the ongoing maintenance. Entering into an agreed payment arrangement will allow people to avoid interest charges.

Maintenance Enforcement charges simple interest as set yearly by the Alberta Judgment Interest Act. For 2008, the rate is 4.25 percent. This rate changes if a person’s court order sets a different rate of interest. Maintenance Enforcement will distribute 80 per cent of the interest collected to the creditor and retain 20 per cent to cover additional administrative and collection costs. This also applies to court-ordered interest.

Alberta’s Maintenance Enforcement Program is authorized by Alberta’s Maintenance Enforcement Act to ensure individuals meet obligations to pay spousal and child support under the terms of court orders and certain agreements. The program manages almost 50,000 files per month, serving approximately 100,000 clients and more than 65,000 children.

Clients can access the Maintenance Enforcement Program Info Line by calling 780-422-5555 in Edmonton or dialing 310-0000 for toll-free access anywhere in Alberta. For more information, please visit www.albertamep.gov.ab.ca.

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Justice website: www.justice.gov.ab.ca

Media inquiries may be directed to:
Jill McKenzie
Alberta Justice
Communications
780-427-8530

To call toll free within Alberta dial 310-0000.

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