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Clarification of Social Security Act Amendments of 1994 Effect on Credit Report

DCL-94-70

Published: December 8, 1994
Information About:
State/Local Child Support Agencies
Types:
Policy, Dear Colleague Letters (DCL), Statutes/Legislation
Tags:
Bankruptcy, Credit Reporting

TO ALL STATE IV-D DIRECTORS        

RE:  Clarification of Social Security Act Amendments of 1994 Effect
     on Credit Reporting           

Dear Colleague:

This is to inform you of a clarification of the previous Dear Colleague Letter 94-64.

In DC 94-64, we informed you of recently-enacted Federal legislation which will impact State IV-D programs.  Our explanation of the Social
Security Act Amendments of 1994 (P.L. 103-432)
requires some clarification.  An explanation of the amended portions of the relevant section of the Social Security Act (the Act) is provided below.

Section 212 of the law amends section 466(a) of the Social Security Act.  Section 466(a)(7), as amended, requires States to have procedures which establish periodic reporting to consumer reporting agencies (as defined in section 603(f) of the Fair Credit Reporting Act).  

As revised by P.L. 103-432, section 466(a)(7) requires the State to report to consumer reporting agencies the name and amount of delinquency of any parent who: (1) owes overdue support exceeding $1,000 and, (2) is at least two months in arrears.  Section 466(a)(7)
will continue to allow that if the amount of the overdue support involved in any case is less than $1,000, information regarding such amount shall be made available only at the option of the State.  

Section 212 of the law specifies that such information shall not be made available to: (1) a consumer reporting agency which the State
determines does not have sufficient capability to make systematic and timely use of such information, or (2) an entity which has not furnished evidence satisfactory to the State that the entity is a consumer reporting agency.  

Under amended section 466(a)(7) of the Act, the provision which allowed the State to impose a fee on the requesting consumer reporting agency for furnishing such information has been deleted.  

The amendments to section 466(a)(7) are effective October 1, 1995.

Page 2 - State IV-D Directors

We have enclosed a copy of the text of section 466(a)(7) of the Act as it now reads, based upon revisions by P.L. 103-432.

If you have questions regarding this clarification, please contact Tom Killmurray, OCSE Division of Policy and Planning at 202-401-4677.  

Sincerely,

David Gray Ross
Deputy Director
Office of Child Support Enforcement