Resident Parent Fraud

A Crime: Claiming Non Payment of CMS

Sadly too many receiving parents abuse the Child Maintenance Service (CMS) and commit fraud, often as a way to get at their ex partner, and, or, to make financial gain.  A Common fraud commited by a receiving parent is Fraud by False Representation.

  
This offence takes place, when the receiving parent informs the CMS that they haven't received a payment.  This not only causes emotional and financial distress to the paying parent, it also abuses taxpayers who pay for the running of the Child Maintenance Service as resources are wasted investigating matters.  False reporting could even delay other receiving parents from getting their CMS payments, as their cases are delayed by the CMS staff dealing with the false representation.   

Some parents repeat the fraud by reporting non payment each month.  They wouldnt do it, if they realised each time they do it, they commit an offence, and the penalties are significant for each offence.

The specific offence:

Fraud act 2006, section 2, Fraud by false representation

(1) A person is in breach of this section if he;
(a) dishonestly makes a false representation, and
(b) intends, by making the representation;
(i) to make a gain for himself or another, or
to cause loss to another or expose another to a risk of loss.

According to CPS guidelines the offence is entirely focussed on the conduct of the defendent, and the maximum sentence is 10 years imprisonment.

Even if no actual gains or losses took place, they can still be charged.  This means that even if the CMS decide that payment has been made, and no financial loss occured, the person making the false representation can still be charged as the action was dishonest and with intent.

How to Report

A paying parent will normally be told that they have not paid the other party by text message and by letter.  We strongly recommend that you sign up for text messages from the CMS, if only to get the warning message that a payment has not been made.

We recommend that when a payment has been made, but the other party claims it hasn't you take the following action.

1. Inform the CMS that you have paid, and provide the evidence of the payment via the portal.
2. Include the sample text provided below when you contact the Child Maintenance Service.
3. Make a Police Report of Fraud, and Economic Abuse via your local Police 101 website, and consider using the sample text in your crime report.  
4. You retain a record of evidence for further reports, should a false representation claim be made again.

Example Text to the Child Maintenance Service

The CMS have accepted my ex's statement that I paid them no child maintenance as fact without doing even the most basic of checks, resulting in them subjecting me to harassment and defamation of character. The CMS has demonstrated reckless disregard as to whether her statement was true or false.

Their bank statements, if requested by the CMS could confirm that all payments had been made.  The CMS has therefore acted recklessly in failing to carry out the most basic of checks, and this whole case rests on the resident parents fraudulent misrepresentation of the facts.

I require a statement from the Child Maintenance Service confirming if a check had been done of the other parties bank statements, before contacting me.  

I also require a copy of any statement, telephone call recording or document provided to the CMS by the other parent, as I wish to enclose it as evidence of fraud to the police, and for the CMS to take steps to preserve that evidence. 

Example Text to the Police

I wish to report that I have been the victim of a crime.  My ex partner has made a fraudulent and dishonest claim to the Child Maintenance Service which breaches the Fraud Act 2006, section 2, Fraud by false representation.

They have dishonestly, made a false representation, to make a gain for themselves, which has exposed me to a risk of loss, by claiming that I have not made child maintenance payments.  In order to coerce additional payments.  I also beleive that they have done this to financially abuse me, and have therefore committed additional offences under the Domestic Abuse Act  2021, by attempting to control my finances.

I wish to record a crime, and would like action to be taken to protect me from further abuse.  I can provide evidence of payments, and the Child Maintenance Service have records of the ex partners fraud.

Expectation

It is unlikely that the CMS will forward the information requested.  An arguement could therefore be made that the CMS are obstructing you reporting the matter as they hold the evidence.  This should be recorded in any subsequent complaint to the CMS, your MP or ICE.  However by asking for the statement you are confirming that you beleive it is evidence of a crime, and the CMS should therefore take steps to preserve the  evidence of a crime.

We suggest that you report the fraud and domestic domestic abuse to the Police using their respective Police 101 reporting websites.  Its possible that when you first report the matter to the police, you may find a little resistence if speaking to student officers or civilian staff.  If they wont take the report, ask to speak to the Duty Police Sergeant

What Not To Do

Under no circumstances should you tell the ex that you have reported the matter.  It could jeopardise future action.

Summary

Claiming non payment is fraud which carries a maximum sentence of 10 years.  Unless paying parents report, there is a risk of ongoing abuse continuing.  

Can Child Maintenance be backdated?

 How far back can child maintenance be backdated?







Child maintenance cannot be backdated to a period before a Child Maintenance Sevice Case is opened.  

Child Maintenance Trap!

Beware the Private Arrangement Trap

In today's post, we're going to delve into a topic that affects many parents: child maintenance payments, specifically private arrangements. With the proliferation of private arrangements and online discussions, it's important to understand the ins and outs of the Child Maintenance Service (CMS) and the potential pitfalls that can arise from starting private payment arrangements when there is a live CMS case. Whether you're the paying parent or the receiving parent, sticking to the guidelines can save you a world of hassle in the long run. So, let's get started with a quick video.

The Temptation of Private Arrangements

It's not uncommon to come across stories of parents who choose to sidestep the CMS payment schedule and opt for private arrangements. However, this practice can lead to unforeseen complications down the line. It's crucial to note that if you have an active CMS case, you're obligated to follow their payment plan. Its not a guidline, its a legally backed up plan based on the income of the paying parent. Changing or deviating from the arrangement might seem like a convenient choice, but it can invite unnecessary trouble. It is of course different if there is no CMS case. The CMS have no jurisdiction to intervene into a non CMS case and a private arrangement is normally of benefit to both parties. CMS cases can not be backdated to before a case was opened.

The CMS Dilemma: Overpaying and Underpaying

One common issue that arises from disregarding CMS guidelines is the dual challenge of overpaying or underpaying child maintenance. Many parents find themselves in a predicament where they have made a private arrangement, only to be pursued by CMS for arrears due to underpayments. CMS uses a formula to calculate payment amounts, and the payment amounts are required to be paid legally, so going against this system can lead to discrepancies even though both parties may have subsequently agreed not to follow the CMS formula. THe key issue is that at any time, the receiving parent can claim that the legally binding payment plan is not being kept to, or not even paid at all.

The Importance of Compliance

To avoid these complications, it's imperative to comply with the CMS payment schedule. If you are a receiving parent, find discrepancies in the payment amount, the appropriate course of action is to engage with the CMS complaints process, although we recommend that if you are able to speak to the ex, you ask them to pay any outstanding balance. Rather than attempting to resolve the issue through private arrangements, adhering to the established system will ensure that you're on the right track. If you are a paying parent, and you dont stick to the payment schedule, your partner could go back to the CMS at any time and say you ae not paying. CMS will look at your last three payments initially and if your bank statement payments dont match the payment schedule, you will automatically be assumed to be in default. Ask yourself, do you really want to pay 20% more due to being put onto Collect and Pay.

The Collect and Pay Conundrum

Nobody wants to find themselves on the "collect and pay" path, which involves CMS taking direct control of payments and potentially adding an extra fee of 20 percent for their services. Sticking to the CMS payment schedule helps you steer clear of this path. For receiving arents, you should be aware that if the paying parent is put on Collect and pay, your paymnets are also charged a fee, and you will receive 4% less due to fees.

Avoiding Lump Sum Payments

Another pitfall to steer clear of is paying arrears as a lump sum. CMS calculates arrears into the ongoing payment schedule, which means that by adhering to the regular payments, you'll gradually clear any outstanding amounts. Paying arrears as a lump sum can complicate matters and may not align with the CMS calculations, potentially leading to more misunderstandings. For example, the Ex may ask for money early, maybe 3 months worth. If you pay it and miss the next three instalments, the money may be considered to be a gift as it was paid outside of the installment plan, and perversely, it will look like you have missed the last three payments.

Getting off of Collect and Pay

If you have been caught out by the private arrangement trap, you will have to pay an extra 20 per cent on your payments for 12 months minimum. However you can ask to be put back to Direct pay after 6 months. You do this by asking CMS to start the process. They will then insist you make a further 6 payments by direct debit, before finally allowing you to pay direct, and without a fee.

Conclusion

In conclusion, navigating child maintenance payments doesn't have to be a daunting task. By adhering to the CMS payment schedule, engaging with their complaint process when necessary, and avoiding private arrangements where CMS have not closed the case, you can save yourself from unnecessary stress and financial complications. Remember, the key is to follow the established guidelines to ensure a smooth and hassle-free journey. A private arrangement should never be set up if there is an ongoing Child Maintenance Service case.

Thank you for taking the time to read our blog post. If you found this information helpful, don't forget to like and subscribe for more informative content. We hope this guide makes your CMS journey a little bit easier. Have a wonderful day