Question about child support arrears reporting

[Rob303]

I have child support arrears, i've been paying on it for years.

The state put it on my credit report way back in 2001 when i first got behind, it eventually came off after 7 years

Then I moved out of state, the state i moved to, put it back on my report again in 2015, i wasn't behind on current payment, they just put it on my report,  it came back off, then they put it back on again, so i got it removed through credit repair

Now they're sending me another notice saying it's going back on again next month.

I thought according to the FCRA, the shelf life is only 7 years, yet they keep reaging it and putting it back onto my report, is this legal for them to do?

This is what the FCRA says regarding it:

§ 622. Information on overdue child support obligations
[15 U.S.C. § 1681s-1]
Notwithstanding any other provision of this title, a consumer reporting agency
shall include in any consumer report furnished by the agency in accordance
with section 604 [§ 1681b] of this title, any information on the failure of the
consumer to pay overdue support which
88
§ 623 - 15 U.S.C. § 1681s-2
(1) is provided
(A) to the consumer reporting agency by a State or local child
support enforcement agency; or
(B) to the consumer reporting agency and verified by any local,
State, or Federal government agency; and
(2) antedates the report by 7 years or less.

Any input would be appreciated, thank you

[pizzadude]

Are you still paying on this or has it been paid in full yet ?

[Rob303]

Hello, 

Still paying, but i thought just like with any other account, once 7 years is up, that's it, it falls off, or if it's removed, it can't be replaced back onto the report since 7 years has expired. 

[pizzadude]

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@Rob303 wrote:

Hello, 

Still paying, but i thought just like with any other account, once 7 years is up, that's it, it falls off, or if it's removed, it can't be replaced back onto the report since 7 years has expired. 

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Accounts only age off from credit reports after they're closed - open accounts generally remain as long as they're still active and I'm guessing that's why this is continuing to show?   You are current with the payments now though is that accurate ?

[Rob303]

Yes, im current, but do not want it on there.

Also, how can it be put back on there once taken off, it's been on and off my report about 4 x since 2001.

Which is also well over the 7 year period it states in the FCRA.

So yes, the case itself is still open, which means i still owe it, but as far as reporting it, i don't see how what they're doing is legal, based on what the FCRA states.

[JoeRockhead]

You’re mixing up how the 7-year rule works.

That limit applies to most negative accounts, but child support is different.  If you still owe arrears, the state can keep reporting it as an active obligation.  It’s not really “re-aging” in the normal sense.  It’s being reported again because the debt still exists.

The law you quoted doesn’t say it can only ever be reported once for 7 years total.  It allows reporting of overdue support that’s been verified within that timeframe, and states can keep updating that info.  If the balance or details are wrong, that’s something you can dispute. But just the fact that it keeps coming back doesn’t automatically make it illegal.

[Rob303]

Let's say that's correct, that child support is somehow different, like student loans indefinitely can report,  or tax liens 10 years as example..

Where can i find this information regarding child support though? I've had people tell me "State can keep reporting it", but then others will say, it's no different than a credit card or auto loan that runs it's 7 year course, and can't legally be put back on the report based on the FCRA rules.

They report it like it's a personal loan on the report

So I just want to see what laws been changed or rules governing child support, proving they are allowed to keep doing this.

[pizzadude]

Good points above, also it sounds like there aren't any lates or negative notations so there won't be any impact to your FICO scores. 

[Rob303]

True, i don't think it impacts it, aside from it actually showing on my report.

I personally believe it hurts even though it's not showing negative just because some lenders i think hold it against you, just for the fact it's child support.

I could be wrong, but I've heard of situations, and even experienced it myself in situations where i don't think i should have been turned down for credit.

My scores are well into the 700's, zero missed payments on anything

I just don't see though how it's legal what they're doing, unless i can see in writing a law or rule that's been changed that overrides the FCRA. 

I hear some people tell me it's different for support, but i've yet to see where this is in writing that it is. 

[ForwardLooking]

Speaking from personal experiance -- in red....

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@Rob303 wrote:

True, i don't think it impacts it, aside from it actually showing on my report.

It will not impact your scores.

I personally believe it hurts even though it's not showing negative just because some lenders i think hold it against you, just for the fact it's child support.

I have never had an issue with lenders seeing it on my credit report and denying me a loan because of it.

I could be wrong, but I've heard of situations, and even experienced it myself in situations where i don't think i should have been turned down for credit.

The only time it was even discussed with a lender is when I was getting a mortgage for my house.  I do not think it was specifically because of it being reported on my credit reports, but rather from the disclosures in the mortgage application where I had to disclose I was paying child support.  I simply provided the ledger from the Texas OAG Child Support division showing I was current and verified the amount being paid.  It was used in DTI calculations, but no issues there for me.  You are required by law to disclose it in at least Fannie and Freddie backed mortgage applications even if it is not showing on your credit report, so it is kind of moot having it on your report.

My scores are well into the 700's, zero missed payments on anything

Good Job!

I just don't see though how it's legal what they're doing, unless i can see in writing a law or rule that's been changed that overrides the FCRA. 

Child support obligations are similar to student loans (as you eluded before) and other debt that falls outside of normal reporting constraints.  It can be actively reported and remain until the obligation is satisified (i.e. child ages out) and there are no arrearages.  Your state's child support agency sets the policy for how they report, they are different between states, so you should check with them to understand the policy that affects you specifically.  Just like any other credit item, they can remain on your report after they are closed out until they naturally age off.

I hear some people tell me it's different for support, but i've yet to see where this is in writing that it is. 

FICO claims it is not used in scoring calculations.  It is visible to lenders as you already know, but it would not be a real issue unless it is showing you behind on payments.  States are required to report child support arrearages under (42 U.S.C. § 666(a)(7)).  States may still report to the credit burreaus reguardless of if it is current or in arrearage based on their individual policies, there is no law or regulation stopping them from doing so.  I personally had a bogus late hit my report from an incorect administrative error after a modification order was mis-entered in their system.  They corrected the issue, removed the late as I was never late, but they do still report monthly as green check marks.  At the end of the day, I just think of it as proof that I am not a deadbeat rather than get upset that they are reporting my perfect payment history on child support.

What's Not Included in Your Credit Score?| myFICO

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