Case Management Case Transfers

Private Collection Agency (October 2002)

Question: CP SIGNED UP WITH A COLLECTION AGENCY IN ARIZONA AND NCP PAID THEM DIRECTLY FOR AWHILE. NCP CONTACTED OUR OFFICE AND WE DID WAGE ASSIGNMENT. CP NEVER SIGNED THE FORM REQUIRED BY CFC TO CHANGE PAYEE AND SHE IS ACTIVE KTAP EFF IN 7/02 ANYWAY. WE HAVE CONTACTED ARIZONA COLLECTION AGENCY AND THEY ADVISED THAT THEY WILL NOT CLOSE CASE AS THE CONTRACT IS RENEWED WITH THEM EVERYTIME NCP MAKES A PAYMENT UNTIL HE DOES NOT PAY FOR 18 MNTHS. THEY ARE CONTACTING NCP STATING HE OWES ALOT MORE MONEY THAN WE SHOW (THEY ARE INCLUDING INTEREST OF WHAT CALCULATION WE DO NOT KNOW). THEY ARE HARRASSING THE NCP'S EMPLOYER ALSO. CP WAS CONTACTED BY THIS OFFICE AND SHE ADVISED CASEWORKER THAT SHE TOLD THEM TO STOP BUT THEY ADVISED HER THEY WOULD NOT AS CONTRACT IS RENEWED EVERYTIME HE MAKES A PAYMENT. THEY WILL NOT EVEN GIVE CP A COPY OF THE CONTRACT. THEY ARE VERY HATEFUL TO HER (PER CP). THE NAME OF THE COMPANY IS CHILD SUPPORT NETWORK, INC, (A LICENSED, BONDED DEBT COLLECTION CO), P O BOX 40320, PHOENIX, AZ 85067-0320 OR 212 E. OSBORN, STE 210, PHOENIX AZ 85012, PHONE 1-800-398-0700, FAX 602-241-1816. WORKER'S NAME IS KAREN. CASEWORKER IN OFFICE SPOKE TO HER ON 10/02/2002 (SEE CASE EVENTS OF CONVERSATION). PLEASE LET ME KNOW SOMETHING ON THIS. “

Area Office Clarification: “The case continues to be active K-Tap for the child. I know our policy indicates we would not represent the CP in any dispute with the collection agency but since this is an active K-Tap case I am not sure what our position is now.”

Answer: Send a letter to the noncustodial parent's employer with a copy to the noncustodial parent informing them to continue to send the payments to the Centralized Collection Unit (CCU) payable to the Cabinet for Families and Children. Since the custodial parent is receiving K-TAP, we must collect what is owed to the state. Also, send a letter to the collection agency and inform them that it is unlawful to have an employer redirect child support payments to a private company when an individual in on public assistance in Kentucky.

While it is unfortunate, there is nothing we can do about the collection agency harassing the noncustodial parent. In addition, it does not seem likely that a contract is renewed each time the noncustodial parent makes a payment. If the contract is between the collection agency and the custodial parent, why would she not have a copy?