Hi.... I'm hoping that someone can give me advice how to lessen the impact of a reported State Owed Debt, 'Child Support Arrears' account, on any furture consideration for a credit card.
Although my childrem are in their late 20's, I am still paying down a very high balance on the said account. I've been paying down the balance without missing an agreed payment schedual for 9 years, but since I haven't paid the balance off in full it's remains on my credit report. By the way, the said account has been on my EX credit report since 2012. But is not on my TU or EQ. That having been said, and knowing there is no way I can at this current time pay of the remaining balance in full, is there anything I can do so that the said account wont lessen my chance of getting a future credit card? I was told my EX that it should fall off my credit report after 7 years, which mean I have a year to go. But too, EX told me that even though it falls off, the reporting State for the said account can have it placed back on if I still owe a balance. I was also told by EX that I can attach a note to the said account for credtors to read, in order to explain the 'why?'
"FCRA 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 is provided to the consumer reporting agency by a State or local child support enforcement agency; or
to the consumer reporting agency and verified by any local, State, or Federal government agency; and
antedates the report by 7 years or less."
I did not want to include interpretation of the law, and thus provided only its citation.
However, I would add my observations as follows:
The statute requires the CRA to include child support information in credit reports they issue, but ONLY if the consumer is found to have been in arrears (i.e., was overdue) in prior payments.
Direct deposit of child support payments is not sufficient to trigger the requirment to include that information in credit reports.
The consumer must have been found to have, at some prior point, been in arrears, and then the fact of having been in arrears must have occured within the last 7 years. Even if there was a delinquency, if the consumer has been timely in the last 9 years, then the inclusion of reference to arrears would not be proper after 7 years.
I would contest the inclusion of child support payments in the credit report if the consumer was never found to have been in arrears, or if there was some prior finding of arrears, it occured more than the statutory period of 7 years ago.
I would also cite, in any dispute of the reporting, the clearly related and broader exclusion requirement of FCRA 605(a)(5), which requires a CRA to discontinue reporting of any other adverse item of information that precedes the credit report by more than 7 years.
If your children are in your late 20's and you are still making payments I would say you are way past due. Pay the debt as you can't get out of it with bankruptcy and debt is first in line if you become delinquent. Maybe focus on paying more than the minimum. If you are at least 10 years behind it seems like you might want to handle that before getting into debt anyway.
Ugh, sorry. I must have ended up reading older posts without realizing it. My opinion stands, but my apology for bumping an old thread. Forgive me. :-(
Threads are not considered outdated here on myfico until they pass one year then they are locked.