State Child Support programs must enter into agreements with financial institutions to conduct data matches to identify accounts of delinquent child support obligors.

• Public Law 104-193, Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA)
• Primary goal to move families off public assistance
• Promote self-sufficiency

Public Law 105-200, Child Support Performance and Incentive Act of 1998, modified PRWORA to facilitate the data match for multi-state financial institutions.

With passage of Public Law 105-200, the Federal Office of Child Support Enforcement uses its national file of delinquent obligors for the data match with multi-state financial institutions and transfers matched data to State agencies.

1. Goals
2. Types of institutions & accounts subject to the match
3. How often the match is conducted
4. Data Specifications
5. Liability Protections
6. Fee Responsibilities
7. Federal Lien/Levy Provisions

To increase collections of delinquent child support

• Banks, savings & loans
• Federal & State Credit Unions
• Benefit associations, insurance companies, safe deposit companies, money market mutual funds

• Demand Deposit Accounts
• Checking Accounts
• Savings Accounts
• Time Deposit Accounts
• Money Market Mutual Fund Accounts

Matches must be conducted each calendar quarter

• Name
• Record Address
• Social Security Number
• Taxpayer Identification Number
• Other Identifying Information

• Section 466(a)(17)(C) of Social Security Act
  • Financial Institutions not liable for disclosure of information or surrendering of assets to the State IV-D agency
• Section 469A(a)
  • Financial Institutions not liable under any State or Federal law for disclosing information to the FPLS

• State law determines whether a State will pay a fee or not.
• The fees must not exceed the actual costs of conducting the match.
• Federal Financial Participation is available for "reasonable" match costs.

Under Section 368 of Public Law 104-193 (PRWORA), a lien arises by operation of law, so that a lien is automatically created as soon as child support becomes past due.

• A legal claim against someone’s real or personal property as security against a debt or obligation.
• Impedes the debtor’s ability to use or transfer the property.

• An actual collection or seizure of the property.
• With regard to FIDM, a levy is the actual taking of the financial asset to satisfy the debt.

• Liens and Levies are governed by State law.
• State law on the use and execution of liens and levies vary.