Voluntary Wage Assignments - Child Support

[Anonymous]

Good afternoon ... first post.

My ex-wife has asked, "to avoid tension," that I agree to a voluntary wage assignment to have my child support withdrawn from my paycheck automatically by the employer.

My payments are current. I was late on a couple payments a while back, but again those have been made. I do not have a fundamental opposition to this - when my check is deposited, child support is the first thing I pay anyway. This will just eliminate the step of my having to go to the state's (Tennessee) website and make the payment.

I'm trying to buy a home in the next 10-12 months so naturally my concern - and I've Googled and Googled - is will this impact my credit report? It is voluntary. It is not a wage garnishment. My gut hunch is it isn't too much different than my United Way or 401K contributions - just comes out before I get my check.

Does anyone have any experience with this? Thoughts?

[Anonymous]

Edit:

Neither attorney (mine or hers) seem to be able to tell me the credit impact of VOLUNTARY wage assignment. The closest is both said "nobody's ever complained about it."

[Anonymous]

I'm not sure that this section of the forum is the best to find an answer to your question.  Perhaps the mods can consider moving it somewhere that will yield a more favorable response.

As far as wage garnishments, child support, etc. I don't believe that these things should really land on your credit report and impact your scores as they aren't credit accounts.  Maybe others that have been down this path can say for sure, but I don't see why they'd impact your credit.

[RobertEG]

If you are overdue on child support obligation and a government agency reports or verifies that information to a CRA, then the CRA is required under FCRA 622 to include that information in any credit report they issue for 7 years from the date of the overdue obligation.

A voluntary assignment of wages would not be an overdue obligation, so there is no statutory requirement for inclusion in your credit report.

However, that leaves the question as to whether a government agency would be aware of or verify any voluntary assignment of wages, and if so, whether they choose to report that fact to any CRA.  I see no reason why they would if the deposit did not result from a delinquency in prior payment and was not ordered by a court, but I would place a call you your state or local government agency and confirm that they have no policy of reporting any such voluntary automated wage assignments to any CRAs.

___________________________________________________________________

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.