Child Support Enforcement: Credit Bureau Reporting Shows Promise

Child Support Enforcement: Credit Bureau Reporting Shows Promise 
(Letter Report, 06/03/94, GAO/HEHS-94-175).

Of nearly $35 billion in child support payments owed nationwide under
the Child Support Enforcement Program, more than $27 billion remained
uncollected at the end of fiscal year 1992. During that year, more than
5.7 of the 8.5 million noncustodial parents owing child support made no
payment on the amount owed. Eleven of 16 states GAO reviewed routinely
report child support payment information to credit bureaus; five states
report information only at the request of credit bureaus. Most of the
states that routinely report usually report only delinquent noncustodial
parents. These states generally report to all three major credit bureaus
information that is less than 30 days old, and few states have had
problems categorizing child support payments in an automated and
standardized format for the credit bureaus. The costs to start up and
run credit bureau reporting systems appear to be nominal. The effects of
credit bureau reporting on increasing collections have not been widely
evaluated by the states GAO reviewed, but completed studies and comments
by state and credit grantor officials suggest that credit reporting is
helping with enforcement. One state suggested that its main benefits
will appear over time as creditors deny credit to delinquent parents.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-94-175
     TITLE:  Child Support Enforcement: Credit Bureau Reporting Shows 
             Promise
      DATE:  06/03/94
   SUBJECT:  Reporting requirements
             Information gathering operations
             Information disclosure
             State-administered programs
             Debt collection
             Child support payments
             Law enforcement
             Parents
             Credit bureaus
             Computerized information systems
IDENTIFIER:  HHS Child Support Enforcement Program
             Texas
             California
             Maryland
             New York
             Tennessee
             Washington
             Fresno County (CA)
             Marion County (IN)
             
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