DIVORCED individuals who continually attempt to get out of their legal obligation of paying spousal or child support are set to face more heat.

Failure to pay such dues can now be recorded on a person’s credit report, which will affect his ability to secure loans as well as his future employment prospects.
In a landmark move, the Ministry of Community Development, Youth and Sports (MCYS) has appointed DP SME Commercial Credit Bureau to track spousal- and child-maintenance debts.

The agency is a subsidiary of credit-intelligence organisation DP Information Group (DP Info).

The initiative is part of a suite of MCYS measures to improve the rate of compliance of maintenance orders. Such orders have been on the increase, in line with the higher number of divorces here over the years.

Official figures show that the number of divorces rose from 7,216 in 2008 to 7,386 in 2009.

In the last four years, there were about 3,400 applications for enforcement of maintenance orders each year. In 2009, there were 3,585 such applications.
Individuals whose former spouse defaults on maintenance need only approach the bureau with a court order and the former spouse’s particulars to have his name put on a credit blacklist, for a fee of at least $50.

The record will then be made available to more than 700 companies, including banks, retailers and other credit providers.

To have his name removed from the list, the defaulter must provide evidence of all past default clearance and prompt maintenance payment for at least three consecutive months.

Ms Chew Yew Nah, managing director of DP Info, said that such an initiative will serve as a strong deterrent here, where a high level of importance is placed on having a good credit standing.

“Maintenance default is like that for any other serious legal debt, such as home loans and credit-card debt. By including this on the credit record, it reflects a more complete picture of the individual’s credit behaviour,” she said.

“It will create more social pressure and motivate defaulters to keep up to date with their obligations. They will care, especially if they are financially active.”

Ms Corinna Lim, executive director of the Association of Women for Action and Research (Aware), said the move was “a step in the right direction” towards its suggested ideal of setting up a state-supported central body to collect maintenance payments.

She pointed out that the “embarrassment factor” of a stain on an individual’s credit report would serve as a disincentive.

“You don’t want your business associates to know that you didn’t pay maintenance for your children,” she said.

Ms Lim said that a significant proportion of the 12 to 15 calls Aware receives on its women’s helpline each day are queries pertaining to maintenance.

Some of the women who approached Aware for help had also been to court as many as 20 times, in their attempts to chase down former spouses who have dodged payments.

Individuals can also seek assistance from the bureau in areas such as mediation to settle maintenance disputes, issue reminders on when and how to pay marital obligations, and trace a defaulter’s whereabouts if necessary.

To reach DP SME Commer- cial Credit Bureau, call 6738-1900 or visit them at Luzerne Building, #04-28, Bendemeer Road.