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 Home > Resources > Information & Forms > Default Fee What is the Default Fee?
As soon as a maintenance order or agreement is filed with the Family Maintenance Enforcement Program (FMEP), we are responsible under the Family Maintenance Enforcement Act for monitoring and enforcing that order. That means we have the authority to take certain actions to make sure the person who is supposed to pay maintenance (called the payor) makes his or her maintenance payments. In addition to these enforcement actions, we are also required by law to charge all payors a fee – called the Default Fee – if they miss or are late with two payments within the same calendar year. How much is the Default Fee? Who does it go to?
Charged once a year only, the Default Fee is equal to one month's maintenance, to a maximum of $400.00. The fee goes to the BC government, not to the person receiving maintenance (called the recipient), to help the government cover the costs of operating this program. Payments to the FMEP are used first to cover money owed to the recipient, and second to cover the Default Fee. How does the payor know about the Default Fee?
After a payor misses or is late on one maintenance payment, we will send out an urgent notice telling the payor that he or she is now in default. The notice tells the payor about the Default Fee, and asks the payor to fill out a Request for Review Form if he or she believes our records are incorrect. If we do not hear back from the payor and the payor misses a second payment within the same calendar year, we will charge the payor the Default Fee. We will send the payor a Default Fee Certificate, declaring that the payor now owes the Default Fee in addition to regular maintenance payments. What if the payor has moved?
We will send the default notice to the latest address we have for the payor. Even if the payor has moved, or if we do not have an address, we are still required to charge the payor the Default Fee.
Are there any circumstances where you won't charge the Default Fee? What if a payor's financial situation changes – through job loss, for example?
The Default Fee is a legal requirement. We must charge it whenever a payor defaults twice or more in one year, even if the payor's financial situation has changed. We will, however, make an exception if we determine that:
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