Louisiana Revised Statutes 51:1444 – Contracts between obligees and private child support collection agencies; contents; provisions
Terms Used In Louisiana Revised Statutes 51:1444
- Child support: means any amount required to be paid pursuant to a court order issued by any court of this state or another state, including any judgment or order issued in accordance with an administrative procedure established by state law that affords substantial due process and is subject to judicial review. See Louisiana Revised Statutes 51:1442
- collection agency: means an individual or nongovernmental entity that solicits and contracts directly with obligees to provide child support collection services for compensation. See Louisiana Revised Statutes 51:1442
- Contract: A legal written agreement that becomes binding when signed.
- Contract: means a contract or agreement, as described in Louisiana Revised Statutes 51:1442
- Department: means the Department of Children and Family Services, office of children and family services, child support enforcement section. See Louisiana Revised Statutes 51:1442
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Obligee: means an individual who is owed child support under a child support order and who has entered or may enter into a contract with a collection agency. See Louisiana Revised Statutes 51:1442
- Obligor: means a resident of this state required to pay child support in accordance with an order of support issued by a court or other tribunal. See Louisiana Revised Statutes 51:1442
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- support enforcement services: means :
(a) Any action taken by the department, upon receipt of an application or referral for services or a request made under the Uniform Interstate Family Support Act, in accordance with the federal requirements of Title IV-D of the Social Security Act and corresponding state laws and regulations without regard to whether there is any existing court order, delinquency, or presumption of paternity. See Louisiana Revised Statutes 51:1442
A. Any contract for the collection of child support between a private child support collection agency and an obligee shall be in writing, in at least ten-point font or the equivalent, and dated and signed by the obligee and an authorized representative of the collection agency. The contract shall be delivered to the obligee in paper form. The contract shall include all of the following:
(1) A clear description of the child support enforcement services that may be provided.
(2) An explanation of the amount to be collected from the obligor and a statement of a sum certain of the total amount that is to be collected.
(3) An explanation in dollar figures of the maximum amount of fees which may be collected under the contract and an example of how the fees are calculated and deducted.
(4) A statement that fees shall be charged only for collecting past due child support, even if the contract includes provisions to collect current and past due child support.
(5) A statement that a private child support collection agency shall not retain fees from collections that are primarily attributable to the actions of the department and the collection agency shall be required to refund any improperly retained fee.
(6) An explanation of the opportunities available to the obligee or private child support collection agency to cancel the contract or other conditions under which the contract terminates.
(7) The mailing address, street address, telephone numbers, facsimile numbers, and Internet address or location of the collection agency and any agents who assist the collection agency.
(8) A statement that the private child support collection agency shall collect only money owed to the obligee and not child support assigned to the state of Louisiana.
(9) A statement that the private child support collection agency is not a government agency and is not affiliated with any government agency and that the department provides support enforcement services at little or no cost to the obligee.
(10) A statement that the obligee may continue to receive or pursue support enforcement services through the department and the collection agency may not prohibit this in any way.
(11) A provision that the collection agency cannot alienate, encumber, sell or assign any rights to the contract to a third party. This shall include using the contract as collateral to secure any debt owed by the collection agency to a third party.
(12) A copy of any other document the collection agency requires the obligee to sign.
(13) A notice that the collection agency is required to keep and maintain case records for a period of two years after the termination of the contract and may thereafter destroy or otherwise dispose of the records. The obligee may, prior to destruction or disposal, retrieve his entire record.
(14) The expected duration of the contract, stated as a length of time or as an amount to be collected.
B. A private child support enforcement service contract shall not include any of the following:
(1) A requirement that the obligee waive the right to pursue any civil or criminal matter, agree to resolve disputes in a jurisdiction other than the obligee’s, or agree to the application of laws other than those of the residence of the obligee. Any waiver, including an agreement to arbitrate or a choice of forum or law, required as a condition of doing business with the collection agency shall be presumed against public policy and unenforceable.
(2) A clause that requires the obligee to change the payee or redirect child support payments that would otherwise be payable to the obligee, the department or other agency administering a state plan approved under Title IV-D of the Social Security Act and corresponding state laws and regulations, or a state disbursement unit, if payment is ordered to be made through a state disbursement unit.
(3) A requirement that the obligee not pursue a child support case with the department or other agency administering a state plan approved under Title IV-D of the Social Security Act and corresponding state laws and regulations.
(4) A requirement that the obligee waive his right to review and consent to any modification of the contract.
(5) A prohibition against termination of the contract for the collection of child support payments until the arrears are paid.
(6) A requirement that the obligee waive his right to accept a settlement offer.
C. A private child support enforcement contract may not be modified by subsequent agreement unless the obligee has signed the subsequent agreement after receiving a written copy of the modifications.
D. The provisions of this Subsection shall be attached to the contract as an addendum, in at least ten-point font, and be signed and dated by the obligee. In addition to any other cancellation or termination provisions provided in the contract, it shall be cancelled or terminated if any of the following:
(1) The obligee requests cancellation in writing within thirty days of signing the contract.
(2) No payment of child support has been collected by such debt collection agency for a period of six consecutive months.
(3) The collection agency breaches any term of the contract or violates any provision contained in this Chapter.
(4) The contract term has expired or the contract amount has been collected, whichever occurs first.
Acts 2010, No. 872, §2, eff. July 2, 2010.