Payment defaulter 277-04270000

The following intrays create if a payer defaults:

• On the first payment they are liable to make:
• Initial Payment Defaulter with employer details (IPDEMEX1)
• Initial Payment Defaulter without employer details (IPDNOEMP)
• For the first time on a payment after a period of compliance:
• First Time Defaulter with employer details (FTDEMEX1)
• First Time Defaulter without employer details (FTDNOEMP)

Check Cuba to review:

• if the amount remains unpaid
• any recent payer contact, changes or outstanding issues
• if employer details are known or an election for EW not to apply has been accepted

Customer contact is not needed if:

• an Election for EW not to apply was accepted, and
• the customer failed to meet the required payments

Does the payer need to be contacted?

• Yes, go to Step 2
• No, see Service Officer role in setting up Employer Withholding (EW) linking

Contact the payer as soon as possible before the next payment falls due and complete minimum collection activity. See Contact with Child Support customers.

Explain the purpose of the call is because their payment has not been received by the due date.

Discuss:

• when payments are due and the amount expected
• reasons for default
• Customers may miss payments for various reasons. It is important to identify and try to resolve the reason for non-payment. This helps to increase the likelihood of compliance in the future. Determine if the payer has made any non-agency payments
• When working with the payer to resolve their default reasons, be aware of the social worker and other service referrals for Child Support customers available
• their commitment to pay the outstanding amount in line with Debt repayment. Start by asking for payment in full, and an undertaking to make future payments on time, and
• any other child support issues

Was payer contact successful?

• Yes, go to Step 3
• No, go to Step 5

The unpaid amount must be paid immediately.

If this cannot be agreed, consider the payer’s individual circumstances and negotiate repayment in the shortest possible time. See Debt repayment.

Make sure the payer is aware if they:

• cannot meet their child support payments, they must contact Child Support to discuss their circumstances
• miss a payment, enforcement action will occur without further contact

When speaking to an employed customer without EW in place, explain Services Australia is required to set up deductions today from their pay. See Service Officer role in setting up Employer Withholding (EW) linking.

Payers who do not want deductions from their pay must make an election for EW not to apply.

If the payer is not a salary or wage earner, explain the benefits of paying child support by establishing periodic payments via BPAY ® or EFT.

If unable to contact the payer, issue a First Time Defaulter Payer Letter (MX17-1) asking the payer to contact Child Support about their payments. See Create a letter using fill-in fields table. This letter is generated from the Letter List window in Cuba.

If the payer is on ‘tracing’, contact the payee. Ask the payee for contact details for the payer and if the payer has made any non-agency payments.

If the customer does not respond to the First Time Defaulter Payer Letter and the amount remains unpaid, take enforcement action. See:

• Employer Withholding (linking) for Child Support customers
• Collection of child support debts through third parties (s72A and s72AC)
• Child Support's information gathering powers
• Centrelink deductions used to collect child support debts

Record all attempted and/or successful contact in the Collection window, see Documentation Cuba Process Help.

Record any payment arrangements negotiated in the Payment Arrangement window, see Payment arrangements Cuba Process Help.

Use the Collection and debt macro. Paste the document created in the Collection window.

The IPD/FTD intray will delete when:

• there is no debt, or
• the intray is manually deleted

If a payment arrangement is recorded and a payment is not received by the agreed date, a Payment Arrangement Default intray will generate.