Will FRO Claim Insufficient Funds?

[#1StepMom]

I'm wondering if you've had this experience with FRO...

Seeing as how my hubby is unemployed and on EI, yet paying child support at an amount over $10,000 more than what he receives in EI (go figure!) I have been adding my money to his account to ensure that all the car insurance and bills are paid. FRO usually withdraws their amount on the 1st of each month.

I checked the account today and noticed that there was not enough money to cover child support, as the car insurance had gone up and the bank withdrew its monthly account fees. The remaining balance was about $30 less than the child support payments. I quickly added some more money to the account, as there was no indication that any transactions had been made today (April 1) by FRO.

Do you think it's possible that FRO may have already attempted to withdraw the child support amount but was unable to do so due to insufficient funds? If so, what happens next?

Right now, I'm just hoping that I had added the extra money before FRO's withdrawl attempt... even if I did that at 7pm!

[AtALoss]

I suggest getting on the phone with your bank ASAP. What appears to be happening is computer delays If you make them aware there is the money they may be able to push it through. Talk with them they may be able to help. FRO does update their deposits and withdrawals at 8 pm. This is what we see at our banks. but beyond that well hard to say.

Oh the rising costs of everything these days. As for EI, they cannot legally give FRO more that 50% of his bennifits. EI if getting $400, they should only be giving FRO $200. Also keep in mind that if tax is being taken it is done so on the amount before the garnishee. Sucks but all legal.

Another thing you can attempt is to contact FRO, tell them your circumstances and try to negotiate reducing the amount temporarily as this is your situation. We were in this position and they offered a reduction, they appear to be able to do this. So speak with your case worker, insist they call you back. Everyone involved with FRO has one, they just dont tell you that. (we refused it as this was being enforced as an expired Order from 7 years ago) We recently won and it is all being sorted out. They just like to muscle peolpe into submitting, You do have rights as a payor.

Enough of my soap box but just frustrates me to no end the games they play.

[kamkatie]

If you do end up with any NSF or OD fees because of this I suggest you call your bank and explain the situation. As long as you don't make a habit of bouncing payments or going into overdraft they are likely to reverse the fee. The banks are extremely cognizant of the financial difficulties people are encountering right now.

[AtALoss]

One thing I did neglect to say was that if in fact it did bounce you also have the option of "manually" sending in the payment. Of course there is a fee. But the bank can resubmit for you on your behalf. Just contact FRO and let them know it's coming. As a payor you do have 30 days grace before it goes to arrears etc. so they give you some leeway in terms of a late payment but as said earlier do not abuse that wth either FRO or your bank.

[#1StepMom]

Thank you for the informative replies, folks!

I just checked the account and it went through. It's good to know that it gets withdrawn at 8pm! Thanks for that bit of info, AtALoss!

Now, what gets me is that the amount that went through is still the amount based on my husband's income from before October 2008! We went to court and got a slight reduction... though only to an amount the judge felt was "low enough" yet still MUCH higher than what he would be obligated to pay according to guidelines based on his EI benefits. This new amount was supposed to be retroactive to January. The decrease was ordered in February. It is now April, and the amount from a year ago is still being withdrawn! GRRRR!

[#1StepMom]

Just to add... just spoke with FRO, and since they have already withdrawn the "original" amount all those months and sent it to the recipient, nothing can be done about that. However, they will count child support for those months (Jan-Apr) in the new amount and use the overpayment as repayment of arrears. So that seems fair. They said they will start withdrawing the new amount next month.

[AtALoss]

I am glad that it has worked out in the end. I was going to say to see if they recieved the new order and then have them calculate a credit but seems they have done so. So all seems good.