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Equifax and Child Support


dadov3
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In reviewing my Equifax report, I see listed the Ohio Department of Human Services listed. I am ok with that, I do pay child support. further reading states I am current and pay on time never late. also true. At the bottom of the entry is a status code of G I refer back to the first page where the codes are listed and G = Collection Account!!! Is this affecting my score? It is not like I have refused to pay and they sent me to a CA. I am mandated by state law to have this money taken out of my paycheck. Just curious, when I saw it being reported as a collection account, I am kinda freaked.

Jake

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"...I am kinda freaked."

You should be. Everytime I've seen a child support case listed on a CR, it's been a collection. Usually the state agencies overseeing child support only report when a parent has failed to pay (on-time) or defaulted. You see, Credit Reporting costs them money. So, they only pay when they think they "have to". And thank your lucky stars that it's not reporting as a judgment.

Did you ever go into default or have a problem with your payments being applied? The circumstances don't really matter. If you had any kind of issue, you stand a good chance of having that particular collection listed until your child is 18. If you have a case-worker or a contact at this agency, you might try contacting that person first to see if the reporting can be fixed from their end.

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I contact the Child Support Bureau they state I am not in arrears and have always paid on time. So I ask why then am I being reported with a collections code on my report. They said, I dont know, it shouldnt be reported like that. So I requested they contact Equifax and have it removed. My case worker stated, she had no way of contacting them!!! I said well you contacted them to put this info on my report. I said can you write me a letter stating I am not in arrears, I am not in collection and that this should be removed from my credit report? She said, I can send you a payment history, I can not do a letter. Amazing!!!! So I sent a dispute to Equifax, stating my case workers name, her phone number and what she had told me and requested it be removed from my report ASAP! We shall see what comes of that.

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  • 4 weeks later...

Something doesn't add up here:

"...it is taken out of my paycheck as required by the ohio law..."

Are you saying that Ohio law specifies payroll deduction for compliant noncustodial parents? This may be so, but it would be well out of the norm. Generally, payroll deductions are administered by the Dept of Child Welfare and Public Assistance only IF there is a problem. That "problem" is what gets your child support coded as a collection, even if you have never been in arrears.

"...the Child Support Bureau...case worker stated, she had no way of contacting them..."

She may well have been telling you the truth. Child Support issues CAN border on legal items. My experience with this comes from dealing with Louisiana. On behalf of a client, I contacted the Dept head for the state (very nice man, BTW) and his case worker and obtained all manner of documents. To quote them both: "It's not a judgment, it just LOOKS like a judgment..." The CRA's still refused to remove the judgment and it's companion TL. They both sent excellent documentation and I finally had a Rapid Rescore performed.

*thinks of Ohio and misses TowerRat*

Research Ohio law pertaining to child support. Call the Child Support Bureau back and pump them (NICELY) for information. Someone, somewhere can shed some light on this. And for you to get this fixed, you need to know all the details.

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Actually, I believe there are at least several states that require all child support payments to be paid by payroll deduction and often sent fisrt to the appropriate state/local agency for distribution to the custodial parent...this is, obviously, an attempt to counter the many, many deadbeat dads amd moms who are orderd to pay but, left to their own devices, don't do so.

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Actually, I believe there are at least several states that require all child support payments to be paid by payroll deduction and often sent fisrt to the appropriate state/local agency for distribution to the custodial parent...this is, obviously, an attempt to counter the many, many deadbeat dads amd moms who are orderd to pay but, left to their own devices, don't do so.

Just curious are child support checks taxed before they are issued to the Custodial Parent?

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My wife is an Enforcement Officer for a PA county Domestic Relations Office. She is not a 'case worker', but an officer of the court and has a specific caseload assigned to her for administration. I ran this thread by her and here are the responses (This is for PA only, your state may differ):

I can tell you that in PA it is required by law to report all support payments collected by the state to all of the credit reporting agencies.

It is also required by law that all child support payments be withheld through payroll deduction with the few exceptions such as Contractors, etc., or others who run a cash business. However - if both parties agree, and the Judge agrees, then support payments can be made directly without involving your paycheck ... but heaven help you if you miss a payment ... the Judge will impose the payroll deduction immediately.

The PA counties run a monthly tape for all credit reporting, so any updates are only made once a month.

No Enforcement Officer in domestic relations may add, delete or modify the records reported to the credit agencies. Any changes MUST be entered and authorized by the Director or Lead Attorney for the office. Many times this requires a Judges Order.

Support payments can be federally taxable. The recipient may be required to list payments as income. Regardless, Domestic Relations reports all payments to the IRS.

They can freeze your assets (unlimited, regardless of what you owe), they can intercept tax refunds and lottery winnings, etc., without any notice at all if you are more than 30 days late. Even joint accounts and jointly held property.

Not all deadbeats are 'Dads' ... a good 40% of her cases are women.

Hope this helps a little.

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In MA, it's standard procedure to go through the MA DOR (Dept. of Revenue) - judges automatically assign it that way by wage assignment.

As another said, unless it is agreed to by both parties and approved by the judge can it be direct payment.

This has nothing at all to do with whether the paying parent is a deadbeat or not - it just saves a lot of aggravation with the court system because there are always those who won't pay unless it is taken from their paycheck. Too many rotten apples spoiled it for the responsible ones, so that is why MA went to the system it currently has.

As far as claiming it as income with taxes and whatever, the receiving party ONLY has to if a portion of it is allocated as spousal support - and only that "spousal" support is taxed on the receiving end. Whatever else called "child support" or "family support", it's all tax free - on the receiving end. The one paying pays taxes on it before it goes out.

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