According to the U.S.General Accounting Office (GAO), child support delinquencies currently amount to over $56 billion. Other estimates put arrearages, including those unreported, as high as $200 billion.
Child support arrears are growing at an alarming rate. Average consumer debt is $300, while average child support arrears total $10,000.
Child support collection does not fall under the Fair Debt Collection Practices Act. The U.S. 4th Circuit Court of Appeals recently ruled that because the collection of child support results from a court order and not a consumer transaction, the FDCPA does not apply.
Only 20 percent of child support collections result in collections, even thought taxpayers spend over $3 billion per year on child support enforcement.
Nine out of 10 children relying on welfare are entitled to some form of child support.
Obstacles affecting the current government child support collection system include: lack of automation state and federal budget cuts resulting in the termination of child support enforcement training for judges, personnel and legislatures unattachable income of self-employed parents the absence of uniform interpretation of laws and regulations
In August 1996,Ohio passed landmark legislation allowing government to charge the non-paying parent a collection fee when using private collectors as an enforcement mechanism. To collect child support, a custodial parent can contract with a private collector or with the state or county. The state or county may also contract with a collector.
According to a 1995 GAO report, state agencies and counties in 37 states are either currently contracting with or planning to contract with private collection firms to recover past-due child support.
During fiscal year 1996, about $12 billion in child support payments was collected, and services were provided in over 19.3 million cases through the Child Support Enforcement Program.
The federal government collected a record $1 billion in delinquent child support by intercepting income tax refunds of non-paying parents for the tax year 1996.
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Able2Collect Collection Agency
Rick Holohan, President
PO Box 531
Utica, NY 13503-0531
Tel: 800-427-1112 US * 315-797-1223 Int'l
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Email: info@able2collect.com
Web site: http://www.able2collect.com/