February 24, 2006

Edmonton... Collection of lottery winnings and restriction of hunting and fishing licences are two new tools to encourage debtors to pay court-ordered support for their families.

The Maintenance Enforcement Program (MEP) will now collect lottery winnings over $1,000 from debtors in arrears and restrict the purchase of hunting and fishing licences until payment arrangements are made or arrears are paid off. These tools will complement several programs in place to encourage debtors to comply with their support obligations, such as driver's licence cancellation and federal licence cancellations, including passports.

"It is always our goal to encourage debtors to comply with the terms of their support agreements. We know that children are most successful when they receive love, attention and financial support," said Justice Minister Ron Stevens. "The support we receive from community and government agencies is invaluable in helping us ensure Alberta's children receive the court-ordered support they need."

The Western Canada Lottery Corporation (WCLC) will report winnings over $1,000 on a single winning ticket. Each month, the WCLC will receive a list of debtors from MEP and will search the list to determine if any prizes should be redirected to MEP to be paid against outstanding maintenance arrears.

Through an agreement with Alberta Sustainable Resource Development, when a debtor applies for a hunting or fishing licence through a local vendor, the vendor will see an alert saying the licence can not be issued. To protect the debtor's privacy, the alert does not provide a reason but includes a phone number the debtor may call for information. Hunting and fishing licence restrictions will be used when other enforcement methods have been unsuccessful.

MEP strives to make payment arrangements with debtors before collection action is taken. As the length of the default increases, the consequences of the enforcement tools increase in severity. A debtor is given 30 days before enforcement action is taken. Debtors are notified when the status of their account merits collection action so they have the opportunity to make payment arrangements and avoid restrictions.

Debtors may avoid all penalties by paying their accounts on time, making and keeping payment arrangements and promptly complying with requests for information. Debtors in arrears who have payment arrangements in place will not see hunting or fishing licences restricted. Once a restriction is in place, a debtor may make payment arrangements to have the restriction lifted.

Since opening its doors in February 1986, MEP has collected $1.8 billion for Albertans who were owed court-ordered maintenance.

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Attachments: Background on the Maintenance Enforcement Program

Media enquiries may be directed to:
Mark Cooper
Justice Communications
(780) 427-8530

Backgrounder

Alberta was one of the first provinces to address the issue of women and children struggling to make ends meet because they do not receive their court-ordered maintenance. In 1986, responding to the need for more effective collection tools, Alberta opened the second maintenance enforcement program (MEP) in Canada, shortly after Manitoba. The program provided hope and results for Albertans who had few options for collecting the money they were owed.

• Before 1986, there were few tools to assist creditors with collection, and the options they did have were difficult, expensive and rarely successful. MEP began its service with a caseload of about 2,000. During 2004/05, MEP had a caseload of almost 50,000 files, representing about 64,000 children and 98,000 clients (both debtors and creditors).
• As a result of new initiatives to locate defaulting debtors and to collect funds transferred to third parties, MEP collected $11 million more in 2000/01 than the previous year.
• During the last decade, MEP's collection total has risen from $92 million in 1995 to $167 million in 2005.
• MEP collection rates have risen by 10 per cent over the last three fiscal years:
• In 2002/03 MEP had a collection rate of 78 per cent ($147 million)
• In 2003/04 MEP had a collection rate of 80 per cent ($153 million)
• In 2004/05 MEP had a collection rate of 84 per cent ($167 million)
• In 2005/06 MEP will have a projected collection rate of 88 per cent ($182 million)
• In 2005, a monthly average for MEP:
• collected approximately $15 million;
• responded to more than 15,000 calls to the Client Services Centre;
• received almost 500 files for registration;
• received over 16,000 letters; and
• entered 80,000 financial transactions.
• Based on surveys, client (debtors and creditors) satisfaction with MEP has steadily climbed from 54 per cent in 1999 to 68 per cent in 2005.

• MEP revolutionized maintenance collection by providing a free and effective service.
• MEP made many bold changes over the years, often being the first in the country to introduce new collections tools:
• In 1994, garnishment of joint bank accounts and motor vehicle restrictions began
• In 2000, driver's licence cancellations began
• In 2000, the Help Us Find website was created
• In 2006, the restriction of recreational hunting and fishing licences began.

• MEP collects child or spousal support once the debtor or creditor has registered. MEP then forwards payments to the creditor.
• When payments are not made, enforcement actions are taken. These include garnishees, licence restrictions and property liens.
• MEP keeps clients' personal information confidential and reviews a child's eligibility for support at the request of the debtor.
• MEP works in partnership with parents to ensure maintenance terms set out by the courts are met.

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MEP website: http://www.justice.gov.ab.ca/mep
Help Us Find website: http://www.justice.gov.ab.ca/mep/help_find.aspx

Media enquiries may be directed to:
Mark Cooper
Alberta Justice Communications
Phone: 780-427-8530

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