Dear Mr. Fuentes:

I am writing in my role of President of the National Council of Child Support Directors to request that your office review and reconsider the information contained in PIQ-99-02 dated February 8, 1999, regarding the Order/Notice to Withhold Income for Child Support. Of specific concern to us is the misuse of the form by private child support collection agencies that believe PIQ-99-02 grants them new authority through use of the form. Federal law and regulation grant these agencies use of the form; however, these agencies are not granted the authority to establish that child support arrears are owed or to “order” that a periodic payment in a specified amount be paid on the arrears. These private collection agencies are issuing the notices as if an underlying order for income withholding exists, when it does not.

Additionally, numerous income withholdings have been issued by private collection agencies that exceed fair credit limit guidelines or pay plans established in individual state laws. In some cases, collection agencies have issued income withholdings where there is no basic child support order, and in others the agencies have included interest in the calculation of the arrears that is not appropriate in all states.

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) specifically mandated employers to remit all child support monies withheld through payroll deduction directly to one location per state. Virginia law, for example, requires employers to send all child support payments to the Division of Child Support Enforcement. Employers should not be placed in the position of being “required” or asked to violate state law due to receipt of an income withholding order from a private child support collection agency. This is a significant conflict.

Mr. Frank Fuentes

January 16, 2001

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Employers are at a further disadvantage. They cannot differentiate between legitimate IV-D orders and other orders issued by entities who are not state agencies and do not have the administrative authority to issue an income withholding order without an underlying child support order mandating withholding. In this circumstance employers have no obligation to comply with an invalid order and the penalties on the reverse of the form are not applicable anyway.

We request a re-evaluation of PIQ 99-02. Clearly, we believe the manner in which the federal withholding form is being misused violates the spirit and intent of federal law and regulations.

We look forward to your response.