Virginia Sues Child Support Collector

The state of Virginia has sued a collector of child support payments, claiming the privately held firm interferes with the state’s enforcement of child-support obligations.

Virginia on Friday charged Dallas-based Supportkids Inc. with unlawfully directing the employer of the noncustodial parent to send checks directly to Supportkids’ office, rather than to Virginia’s Division of Child Support Enforcement.

Supportkids also uses the name Child Support Enforcement when sending letters to employers of noncustodial parents, according to the suit by Virginia Attorney General Bob McDonnell. This “name is easily confused with Virginia’s child support division,” according to a press release on the suit from Virginia Gov. Timothy M. Kaine. 

Supportkids charges a fee of 34 percent of the payment, and then forwards the remainder to the custodial parent, according to Virginia. A family typically hires a for-profit firm like Supportkids when the state hasn’t been able to collect payments from the noncustodial parent.

Supportkids Executive Counsel Eric Rosenkoetter declined to comment on the charges but released a statement in response.

Supportkids “will be working cooperatively with Attorney General McDonnell to resolve the issues … I believe that his office is aware of the valuable service Supportkids provides to parents in Virginia, and I’m confident we’ll come to a solution that preserves the private sector option for parents who need some extra help collecting their child support,” according to Rosenkoetter’s statement.

Supportkids reports it has collected more than $365 million in child-support payments nationwide since 1991.Virginia reports it collected more than $608 million in 2007 in support payments for 484,000 children.

Nick Young, director of Virginia’s division of child support enforcement, told insideARM the state has been attempting to resolve its problems with Supportkids for five years. “Noncustodial parents are supposed to pay the state child support office. If the money is redirected to Texas, we may not know the parent has paid. Then we go after that person,” said Young.

The use of the term “Child Support Enforcement” in letters confuses many employers into thinking they are sending money to the state, said Young. Further, Supportkids’ fees take money away from the child, Young said. For example, “the judge said the child should get $1,000 a month, not $666. That will be part of our discussion in court,” he said.