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wmfriedman
Posts: 5
Registered: ‎06-25-2009
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Re: Unable to get Auto loan due to child support arrears.


Tazman81 wrote:

So, I am trying to understand what the issue is with regard to this thread?  Is it that the Child Supporting Agency is not reporting correctly?  I see some posts about people being behind on their child support so it is showing as late payments on their credit from the agency.  I don't see where this is incorrect.  It seems to be reporting accurately just like any other type of financial obligation.  My suggestion would be to talk to the Agency, and instead of using that $2000 as a down payment for a car, use it along with any tax return funds received to pay off the rears on the child support and see if the Agency can remove it from your record since you are all caught up.  Much like a PFD type of deal.

 

I guess I am not understanding why people are so heated about the agency putting a financial obligation like this one on your credit.  To me, it seems to be the MOST IMPORTANT financial obligation that a PARENT will ever have.  It cost money to feed a child and it makes no difference what type of job you have to make whether it be demeaning or not.  I would scrape callis from a person's foot if it meant putting food on the table for my child.  Anyhow, that's my own personal opinion, but financially I think it good that anyone behind on childsupport be reported to the credit bureaus.  Why should a parent be able to purchase nice things, new vehicles, a new home, if their child is not being taken care of.


You have no clue? I was laid off work for 18 months. I did not pay all my child support and became 180 days arrears. My ex remarried and had 2 more kids with her new husband during this time frame. They were not poor or destitue. I sent WHAT I could WHEN I could. The judge would do NOTHING because I was out of work. The debt kept piling up. I finally got a job and am have been paying child support + additional for arrears since 2007 without a missed payment. Here it is 4 years later and until my balance is 0 Texas Will not remove the 180+days arrears even though I have NOT missed a payment since 2007!  Why do i need a car loan? I had an 8 year old car with 220,000 miles on it and need a new one so I can work and PAY my child support! I and not trying to finance a cadillac or corvette, just a simple 4 door 4 cylinder car...think cheap hyundai.....and couldn't even get that!

 

I was forced to go to a buy here pay here place and pay almost twice as much for the car. Because it cost so much more that what I would have paid at a normal dealership, I now pay LESS on my arrears every month.

 

I also get double dipped on my credit reports as I live in another state, so my state and texas BOTH report it to the credit bureaus. So to creditors it looks like I owe huge amounts to 2 states.

Finally after 4 years I have gotten my 10,000 debt to under 5,000 now.  $600+ bucks a month adds up when unemployed for a year and a half!

Valued Contributor
usmc58555
Posts: 1,673
Registered: ‎02-18-2009
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Re: Unable to get Auto loan due to child support arrears.

[ Edited ]

"You have no clue? I was laid off work for 18 months. I did not pay all my child support and became 180 days arrears. My ex remarried and had 2 more kids with her new husband during this time frame. They were not poor or destitue. I sent WHAT I could WHEN I could. The judge would do NOTHING because I was out of work. The debt kept piling up. I finally got a job and am have been paying child support + additional for arrears since 2007 without a missed payment. Here it is 4 years later and until my balance is 0 Texas Will not remove the 180+days arrears even though I have NOT missed a payment since 2007!  Why do i need a car loan? I had an 8 year old car with 220,000 miles on it and need a new one so I can work and PAY my child support! I and not trying to finance a cadillac or corvette, just a simple 4 door 4 cylinder car...think cheap hyundai.....and couldn't even get that!

 

I was forced to go to a buy here pay here place and pay almost twice as much for the car. Because it cost so much more that what I would have paid at a normal dealership, I now pay LESS on my arrears every month.

 

I also get double dipped on my credit reports as I live in another state, so my state and texas BOTH report it to the credit bureaus. So to creditors it looks like I owe huge amounts to 2 states.

Finally after 4 years I have gotten my 10,000 debt to under 5,000 now.  $600+ bucks a month adds up when unemployed for a year and a half!"

 

____________________________________________________________________

 

Sorry but you had the kid.

 

Your situation although terrible is no different then the people who lost their job/medical coverage and then had a catastrophic illness in our [Edited to remove a political statement] toted unbroken medical system- where the cost of COBRA could be thousands of dollars a month. Or people I know who get divorced and they are left saddled with bad credit or debts from the spouse.

 

The pendulum swings both ways, and at one point no one made people pay their child support, now the laws are draconian. It sucks that you cannot get politicians involved- because if they get involved they will be viewed as non supporting of children and single mothers, but by the same token I know people who break their back and work two jobs to pay/back pay child support.

 

At least they are your kids, since many people start supporting what they think is their child, find out they are not the father, and because they had established support the courts force them to continue paying.

 

My state does not allow gay marriage, and under DOMA if I were to be in domestic partnership with my spouse I would be forced to pay taxes on the "family" medical benefits that we would receive where a married Heterosexual couple would not, essentially meaning make $2,000-$3000 a year less then my co workers, every year.


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feelingfroggy
Posts: 1
Registered: ‎02-15-2014
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Re: Unable to get Auto loan due to child support arrears.

It's amazing how judgmental some men and women can be. Fair reporting on credit is a legal right. Child Support Agencies are collection bureaus. As such, they are required to report accurately. If you are current on laments the agency is falsely reporting. This is not a loose interpretation. 180 days delinquency according to the credit bureaus means the reporting agency hasn't received a payment in 180 days. If you've been making regular payments then the agency is falsely reporting. Get an official printout from the child support document showing history of payment, then send that to the credit bureaus to challenge the delinquency.
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Shokk
Posts: 364
Registered: ‎06-21-2013
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Re: Unable to get Auto loan due to child support arrears.

People get hosed every day over child support.  I'm in Texas as well.  Was unemployed after military and paid full amount for as long as I could.  Then I cut back to half.  After 6 months of this, she took me to court.  Somehow ended up with almost 5k in arrears, with lots of lates on my CR.

 

As someone else mentioned, I disputed (online) and it came back verified.  Next dispute was over the phone only to remove the initial 180 day late on the 2nd month. 1st month showed on time.  After the dispute this time, all late pays were removed excpet the one I called in about.  Go figure!  Still better than it was.

 

Was just approved for a CapOne auto blank check for up to $30k, rate under 8%.  My scores are still low 600s with baddies left to deal with.  Auto TLs are golden though.  point is, its possible to get approval even with child support arrears.  Maybe its because mine shows current...

I don't know my start scores, but low 500s. 6/13

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Officer737
Posts: 148
Registered: ‎01-02-2008
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Re: Unable to get Auto loan due to child support arrears.

Honestly, child support is an unfair thing when it comes to child support. Non custodial parent it hits your DTI ratio, the custodial NEVER has to disclose it unless they want to and generally they only do this for lenders and such because it shows an almost guarnteed amount of money every pay day. In my case, my ex was messing around with another guy, I find out about and split up. Suddenly she's pregnant and I told her I would demand a DNA. She skips town and didn't hear from her for a little over a year. Get a notice for child support, take the "DNA" test and it says that my daughter is 96% a match for the men tested to have similar characteristics (I was the only one tested that should be a bit closer in my opinion). BAM, state goes back and tacks on child support since the child was born and didn't care that I didn't know even who or where the child was. Instant $8,000 arrears! Since I live in TN they are supposed to factor in both parent's income. Mom works off the books and doesn't claim any income and as the custodial parent she can't be forced to get a job, non-custodial parent on the other hand is threatened if you don't have a job for any reason and get more than 180 days late you go to jail. Non-custodial parent is required to provide medical coverage whether you have a job or not. Custodial parent can qualify the child for food stamps and other state aid because again, they aren't required to disclose the child support even though the same state organization does all of it. Non custodial parent gets married and has kids but has to keep paying the amount of support for the first child and with no consideration for any other kids ( I know before you say, well you did it now deal with it). Custodial parent can get married and add a second income to the equation  but the custodial parent is not required to report the income of the new spouse and are permitted to keep the child on any and all state aid. 

 

My daughter I accept as my own and have no problems paying the child support or anything else she needs. But I think the system should be more equitible. If they report on my credit report, then they should report on the other parent's as well. They should also be required to report the child support as well. 25% of your income is big hit in your pay check since it is before taxes then Uncle Sam taking another almost 25%.

 

With the DTI and roughly only having half your pay, makes it kinda hard to find loans sometimes no matter what. 


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gypsymama
Posts: 39
Registered: ‎02-03-2014
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Re: Unable to get Auto loan due to child support arrears.

Officer737 you're wrong about the child support reporting for non-custodial parent. Child support doesn't have to be reported as income for issues of applying for credit if you choose not to disclose it but when applying for state aid it HAS to be reported. When applying for aid you report family size and full income so if a woman remarries and applies for state aid she would have to disclose the husband and all children or members in the household and income for all household members. 

 

Child support showing up on the credit report is entirely legal and I doubt you have any recourse. OP, have you tried with a smaller company like a used car lot or a local credit union? Some of these agencies may be willing to accept a statement and proof of payments. It's worth a shot.

Member
wmfriedman
Posts: 5
Registered: ‎06-25-2009
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Re: Unable to get Auto loan due to child support arrears.

Amen...The nightmare is over. I have a negative 100 balance on child support.(I overpaid) in December.  Child support has vanished off all three of my credit reports.....Proof positive..They were reporting it as a PUNITIVE measure.

 

I was finally able to file taxes with the spouse to take advantages of filing jointly. (injured spousr filing was a pain)......

 

The best part was the EX calling asking when I was going to file my taxes, as her car needed some repairs. She asked when she was getting my return. I told her I was not in arrears so she wouldn't be getting anything other than normal support.......priceless.

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Remember0
Posts: 1,284
Registered: ‎02-12-2014
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Re: Unable to get Auto loan due to child support arrears.


wmfriedman wrote:

Amen...The nightmare is over. I have a negative 100 balance on child support.(I overpaid) in December.  Child support has vanished off all three of my credit reports.....Proof positive..They were reporting it as a PUNITIVE measure.

 

I was finally able to file taxes with the spouse to take advantages of filing jointly. (injured spousr filing was a pain)......

 

The best part was the EX calling asking when I was going to file my taxes, as her car needed some repairs. She asked when she was getting my return. I told her I was not in arrears so she wouldn't be getting anything other than normal support.......priceless.


Nice! Glad you managed to work through the arrears and that things are looking up now!

Regular Contributor
Officer737
Posts: 148
Registered: ‎01-02-2008
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Re: Unable to get Auto loan due to child support arrears.


gypsymama wrote:

Officer737 you're wrong about the child support reporting for non-custodial parent. Child support doesn't have to be reported as income for issues of applying for credit if you choose not to disclose it but when applying for state aid it HAS to be reported. When applying for aid you report family size and full income so if a woman remarries and applies for state aid she would have to disclose the husband and all children or members in the household and income for all household members. 

 

Child support showing up on the credit report is entirely legal and I doubt you have any recourse. OP, have you tried with a smaller company like a used car lot or a local credit union? Some of these agencies may be willing to accept a statement and proof of payments. It's worth a shot.


Which part of the non-custodial parent was I wrong on? The reason I ask is because everything listed above is what has happened to me over the years. Any just because someone is supposed to report their current living situation, marriage status and everything doesn't mean everyone does.


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bunga7
Posts: 67
Registered: ‎01-21-2014
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Re: Unable to get Auto loan due to child support arrears.

I won't get involved in the moral issue of children and support. What I don't understand, and naver have, is regarding the taking of your income tax refunds. I don't dispute that the government can (and SHOULD) take them. What I don't understand is why people don't change their exemptions so there isn't a refund coming. I've never understodd the refund anyhow. If you're not claiming your exemptions correctly, you're giving the government interest-free money over the course of a year just so you can get a refund. An odd savings plan.


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