Interest & Default Fee

Under BC law FMEP can charge interest and default fees when payments are late or missed.

Interest

Interest is collected on late payments and arrears.

Interest is:

  • calculated and applied daily
  • currently 2.70 per cent
  • forwarded to the recipient

Interest may not be charged by FMEP if:

  • the payor is on income assistance in BC
  • the order is being enforced by another enforcement program outside BC

Note: If the order sets an interest rate, FMEP will calculate interest at that rate.

Default Fee

A Default Fee is charged when the payor misses or is late with a payment twice or more in the same year.

A Default Fee is:

  • charged once a year
  • equal to one month’s maintenance to a maximum of $400
  • forwarded to the BC government to cover the costs of operating this program

A default fee isn’t charged if:

  • the payor is on income assistance in BC
  • the order is being enforced by another enforcement program outside BC

Paying a Default Fee

A default fee can be paid by using online banking or cheque.

Any payment received by FMEP will be used to first pay maintenance owed to the recipient before going towards the default fee.

If a default fee is not paid enforcement action can be used to collect it.

Reviewing a Default Fee

If the payor believes FMEP’s payment records are incorrect, the payor can complete a Default Fee Request for Review form (PDF, 31KB) and mail it to FMEP.

A default fee can be reviewed if:

  • the payor made the payment on time
  • the payor’s cheque was returned “NSF” due to a bank error
  • the payor was receiving income assistance on the date the payment was due
  • the order or agreement ended or was changed and FMEP did not yet know about it

See Default Fee Fact Sheet (PDF, 94KB)

Recipient withdraws from FMEP

If the payor still owes default fees when the recipient withdraws from FMEP, the payor will remain enrolled until those default fees are paid.