Kenya N. Rahmaan

There have been numerous reports concerning non-custodial parents (NCP) who will not receive Coronavirus stimulus payments for allegedly owing child support debt. Amid countless unanswered questions and extremely vague responses to inquiries from parents and child support advocates, the Federal Office of Child Support Enforcement (OCSE) has finally released a letter offering some offset processing instructions for child support agencies tasked with seizing payments meant to assist during this critical global crisis. Of course, there is no mention of canceling child support payments while the country lives through the pandemic. It looks as if the government has found yet another way to rob non-custodial parents legally.

To be clear, the CoronaVirus Relief and Economic Security (CARES) Act (the “Act”) intentionally exempts these rebates from reduction or offset against certain debts, there is no exemption for child support debt (OCSE, 2020). At first, it seemed that alleged child support debtors were the only people subject to having the stimulus money garnished. Later, reports showed that private debt collectors with judgments against citizens could attach bank accounts to satisfy debts. Many news outlets and consumer protection organizations have offered information explaining defenses for non-child support debtors. To this day, there is only the newly issued letter from the OCSE and the advice to file for a child support modification supplied as a guide for struggling NCPs trying to pay bills during the Covid-19 pandemic.

Many have asked how the government can seize the stimulus money since the payment is intended to assist people experiencing financial difficulty caused by the virus. Due to,

these economic impact payments are treated as a tax refund offset, and not an administrative offset, the Act does not provide states the option to suspend federal tax refund offset in cases meeting the eligibility criteria under Section 464 of the Social Security Act and 45 CFR 303.72. (Office of Child Support Enforcement (2020)).

For The Temporary Assistance for Needy Families (TANF)/Foster Care cases, the threshold for an offset is $150, and for non-TANF/Medicaid-only cases, the threshold increases to $500. This amount can grow because of the unnecessary and ever-present fees child support agencies charge. Understandably, the child support agency expects increased collections as they garnish tax refunds and stimulus money. But what will happen when and if the funds seized result in an over-payment to a child support account? More than likely, nothing.

There is a reason that state child support agencies fail to issue refunds when overpayments occur and are proven by the NCP. Based on a report written by Paula Roberts, there is no provision for recouping overpayments in the law. Because of this, NCPs have filed complaints concerning overpaying on child support accounts just to be ignored by the overseers of the unjust system. When lucky enough to receive a response, caseworkers tell them that the over-payments will be credited to their accounts for future child support payments. If the account is closed, they are advised to file a civil lawsuit against the custodial parent (CP) if they want a refund. Telling parents this is equivalent to a fool’s mission.

While an NCP stands little chance in recovering overpayments from a CP, the government does have limited guidelines to follow when attempting to recoup overpayments made by state agencies. Admittedly, there are several instances where an overpayment can occur. However, the ways to recoup are limited, even for the government. According to the OCSE (1997), a state may recoup the overpayment to a custodial parent from the next monthly support payment if the custodial parent agrees to allow the state to do so. NCPs have two choices, will enable the overpayment to be applied to the account or appeal to the other parent for their money. These will be the only choices dealing with the over-payments of stimulus payments.

When wondering how such a travesty could be permitted, officials provide little explanations to the public. Let’s consider the scenario where an NCP is still paying for an emancipated child. Once the overpayment has been identified, at least in Texas, it is not the responsibility of the state to recoup the excess funds. Rachel A. Brucks, a Staff Attorney at Cordell & Cordell (2019), explained,

if a Texas agency had no way of knowing the obligor was overpaying, such as not being notified that the obligation to the minor child ended early because the child died, got married, dropped out of school, etc., then they are not responsible for attempting to recover the funds, as they had a good faith basis for continuing to distribute them.

However, the state would enforce punishments against the NCP if they failed to make complete and timely payments.

Caseworkers readily and forcefully assume that responsibility all day, every day, nationwide. Meanwhile, the CP is not held accountable for reporting those life-changing events. Even when CPs receive over-payments from emergency stimulus money provided during the pandemic, as we know that they will, the government will claim zero responsibility in recouping the payment. It is the responsibility of the paying party to recoup the funds from the overpaid party (Brucks).

Another example of how the government hides behind the exclusion of protections for reimbursement for over-payments by NCPs is the age-old argument that child support is for the children’s best interest. Despite overwhelming evidence of the child support program being a welfare recovery program and proof of the billions of dollars generated annually on behalf of the government and private entities, many still believe this talking point. The federal government has even boasted that the child support system is a ‘government success story,’ which is very accurate. The same can not be said for the millions of low-income children still living in poverty, or the non-custodial parents forced to live year after year without whole paychecks, seized bank accounts, and now offset CoronaVirus stimulus money.

In New Jersey, the government will not consider overpayment refunds, although it’s their fault.  According to Jacobs Berger, LLC., even if it is shown that child support was paid erroneously or in a greater than was just, it is unlikely that the payer will be reimbursed or that any retroactive actions will be taken.  That money will never reach the children. The overpayment adds more money to state budgets and there is no recourse available for the children or the NCP. The defense for this thievery is that the reimbursement of child support over-payments will put the custodial parent in a difficult position, and will therefore, negatively impact the child, (Jacobs Berger, LLC.).  Again, and in addition to, the case of the stimulus payments, negative impact that will be forced upon NCPs is not considered and is flat out ignored.  

With the rollout of the CARE Act and the stimulus payment offsets for alleged child support debtors, NCPs must protect themselves now and in the future. One of the most significant steps to take is to demand an audit and an itemized statement from the local child support agency. Traditionally, the assigned caseworker will only provide a printout with dates and amounts. A printout is an insufficient invoice to provide to NCPs as they are being charged tens of thousands of dollars and punished because of debt.

If the electric company or a department store sent someone a bill for $25,000 without a detailed explanation of the charges, most would refuse to pay the debt. A child support bill should be treated no differently. Treating child support as a bill is especially important since there are no protections for over-payments made by NCPs, and there are talks of more stimulus money being authorized. As it stands, when the stimulus money is seized, the child support account is overpaid, there is no accountability and no way to demand a refund. NCPs need to verify that child support bills are accurate to avoid any future over-payments.

References:

Brucks, R. A. (2019, May 28). How do I get reimbursed for overpayment of child support? Dads Divorce. https://dadsdivorce.com/articles/how-do-i-get-reimbursed-for-overpayment-of-child-support/

Economic impact payments under the coronavirus aid, relief, and economic security (CARES) Act. (2020, April 13). Office of Child Support Enforcement | ACF. https://www.acf.hhs.gov/css/resource/economic-impact-payments-under-the-coronavirus-aid-relief-and-economic-security-cares-act?fbclid=IwAR0HncsaBl7WaCQ4Hg2WlO9-8H1yHZdrlEJztIDePikA5BtTyiOWj1UhQbo

Jacobs Berber, LLC. (n.d.). What can I do if I have overpaid child support? | Child support attorneys Morris County NJ | Morristown child support overpayment attorneys. Jacobs Berger, LLC. https://www.jacobsberger.com/what-can-i-do-if-i-have-overpaid-child-support/

Office of Child Support Enforcement. (1997, September 15). Collection and disbursement of support payments. Office of Child Support Enforcement | ACF. https://www.acf.hhs.gov/css/resource/collection-and-disbursement-of-support-payments