A Consumer’s Guide to Private Child Support Enforcement Agencies

According to some estimates, the amount of unpaid child support may be as great as $100 billion. If you are among the millions of parents who are owed, but do not receive child support, you may want to consider using a private child support enforcement agency to help you collect the support due you. You should be aware of what is involved in enlisting the services of a private agency so that you can make a truly informed choice.

Services from private child support enforcement agencies are, of course, not free. Private agencies are not supported by taxpayer dollars. They must operate as businesses in order to meet their costs, including paying their employees. As an informed consumer, you need to make certain inquiries before you sign any agreement with a company for child support enforcement services, including the following:

What are the terms of the contract or agreement between you and the private child support enforcement agency? There should be a written agreement, signed by both you and the agency, which states in clear language – understandable to you...

What the agency will do for you – ask plenty of questions and beware of agencies that claim to offer enforcement tools that can only be provided by state child support agencies, such as tax intercepts.
What it will charge for its services – the amount to be charged must be definite and you should not accept an approximation.

What collections the fees will be charged on – most private agencies will not take fees on collections which are due solely to work performed by a state agency and will refund the fees after it is determined only the state agency did the work.

How its fees are collected – are they paid directly by you or are they taken from the support the agency collects for you?

How long you are committed to the agreement – this should be stated in terms of a dollar amount to be collected or as a length of time.

How the agreement may be terminated – you should understand when you may terminate the agreement and when it may be terminated by the agency.

If there is any part of the proposed agreement you do not understand, do not sign it until you are completely satisfied with an explanation of its terms and conditions. Be sure that you have a copy of the signed agreement and that you keep it in a safe place.

What is the business history of the private agency? Before you sign any agreement, you should feel comfortable with your choice of a private child support agency. This means you need to find out...

How long has the agency been in business?

What is its track record of collection?

Have there been any complaints to a local Better Business Bureau, or a state’s Consumer Protection Agency (often located in the Office of the State Attorney General) which are unresolved?

Is the agency located in a state that has specific laws requiring registration or licensing? You may find this out by asking the private agency. Call the state agency responsible for licensing or registration to find out if the agency is registered or licensed and whether there are any unresolved complaints against it.

What payment records does the private child support enforcement agency keep and what information is provided to the client? A reputable private agency will maintain complete records about its actions and the outcomes for each case. It should promptly provide the client, upon request, with information about the status, as well as the history of collections made in a case.

Finally, you should know that if you already have a case open with a government agency, you can also engage the services of a private agency as long as you are not currently receiving public assistance (“welfare”). The government agency has the use of certain enforcement tools not available to private agencies – such as the interception of federal income tax refunds.

If you do decide to use the services of a private agency – whether or not you also have a case open with the government program – you will need to agree to have collections sent to the private agency. The reason for this is so that the agency can keep a full accounting of collections and that it can receive its fees for the services provided under your agreement. In order to direct support payments to the private agency, it will be necessary for you to complete a “change of address” (COA) form which authorizes the state disbursement unit or local registry to disburse support payments to you in care of the private agency. Once the agency receives a payment, it will take the appropriate percentage for its fee and send the balance to you. This should take no longer than a few days.

The Child Support Enforcement Council (CSEC) is the industry association of private child support enforcement companies. CSEC members agree to a set of standards and principles as members. For a listing of these companies, go to www.csecouncil.org.

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