OREGON

WORKING WITH PRIVATE COLLECTION AGENCIES

Goal: Revise laws regarding the interaction between the Child Support program (CSP) and private collection agencies (PCAs) in order to create a working partnership.

Description: In 2001, Oregon passed a law outlining the interaction between the CSP and PCAs as related to child support. The 2001 law was found to be too restrictive for PCAs. As a result, no PCAs chose to do business in Oregon if the custodial parent had a IV-D case.

Key amendments to the law (Legislation signed by Governor June 18, 2003 and these amendments become law in January, 2004):

• Remove the 180 day limit on the length of time the PCA would be on the case as a "payto";
• Raise the fee cap from 20% to 29%. More than 29% may be charged if the PCA hires an attorney to perform legal services on behalf of the custodial parent and those terms are included in the agreement between the PCA and the custodial parent;
• The agreement between the PCA and the custodial parent must provide information on the fees, penalties, termination and duration of the agreement in at least 12 point font; and
• The Department of Consumer and Business Services shall adopt rules that regulate the practices of PCAs that enter into agreements with custodial parents who are receiving IV-D services. (This department already has oversight of other PCAs.)

Key provisions of the existing law which will remain:

• The CSP provides notice to the custodial parent advising of free services by the IV-D program, it also requires the custodial parent to submit documentation, including a notarized form, before the PCA will be added as a "payto;"
• The PCA may provide locate and investigative services then disclose the information to the CSP for enforcement;
• Payments will be reinstated to the custodial parent upon the custodial parent's request if the PCA violates the law or the rules adopted by the Department of Consumer and Business Services; and
• The PCA may take enforcement actions only in coordination with the CSP.

Anticipated Outcomes:

Raising the fee cap and removing the 180-day length of the "payto" should cause at least a few PCAs to be willing to offer their services to custodial parents who are receiving IV-D services in Oregon. Also, knowing that there will be a state regulatory agency for the PCAs will address some of the consumer protection concerns of legislators and program staff. These improvements should enable the CSP and PCAs to begin working in coordination to serve families in Oregon. Oregon anticipates ongoing communication between CSP leadership and the CSEC to monitor progress of this new legislation.

Location: Statewide

Funding: State operating funds using regular FFP.

Replication Advice: Know what kind of partnership your state CSP wants to have with PCAs and then work with the Child Support Enforcement Council (an association of private child support enforcement companies) when developing any PCA legislation. Find a balance between CSP resources and PCA business needs and general consumer protection and overall customer service.

Contact:

Ronelle Shankle

Assistant Director for Policy, Rules, and Legislation

Phone: (503) 986-6087

Email: ronelle.shankle@doj.state.or.us