Credit Bureau Reporting Procedures

New Jersey Judiciary Probation Child Support Enforcement

Revised 6-2019

A. Authority

United States Code:	15 U.S.C. §1681 42 U.S.C. §66
New Jersey Statutes Annotated:	N.J.S.A.  2A: 17-56.21
Other Authorities	OCSE Action Transmittal – AT 98-30

B. Overview

Child support arrears greater than or equal to $1000 are automatically submitted to credit reporting agencies on a weekly basis.  AOC PCSEProbation Child Support Enforcement staff review the NCPNon-custodial parent contests. Financial lending institutions such as banks, mortgage lenders, credit card issuers, etc. can view support obligations listed on a consumer credit report.  

With regard to UIFSAUniform Interstate Family Support Act cases, the Federal Office of Child Support Enforcement, per Action Transmittal OCSE-AT-98-30, recommends that the responding agency (where the support order is enforced) become the IV-agency that will report the account.  Only one IV-D state agency should report the account.

C. Selection Criteria

In order for a case to be selected for credit bureau reporting by NJKiDS, the following conditions must be met:

1. Open IV-D case
2. Non end-dated support order exists
3. Confirmed Good Primary SSNSocial Security Number exists for NCP
4. The case is marked Responding interstate –or– the case is marked Initiating interstate and the referral type on the ISIN record is “Request Registration of Foreign Support Order for Modification”
5. Case selection date is greater than or equal to the support order effective date plus 45 calendar days
6. Arrears are greater than one month’s current support obligation if no income withholding activity chain is open
7. If an income withholding activity chain is open, arrears must be greater than two month’s current support obligation
8. Arrears are greater than or equal to $1,000
9. The NCP is not in active Chapter 13 Bankruptcy.  (This is an NJKiDS exclusion. Credit reporting is allowed under bankruptcy law.)
10. The case is not marked Enforcement Exempt
11. The case is not marked Credit Reporting Exempt
12. A Credit Reporting activity chain does not exist in Active mode on CPRO

D. Notification of Intent

1. On a monthly basis, a Notice of Reporting to Credit Agencies (Notice) CS044 generates for all eligible cases. This two page document is systematically generated through NJKiDS. The second page of the document is submitted by the NCP to file a contest.
2. The NCP has 35 days from the date of the Notice to submit a written contest to AOC PCSE staff.
3. The Credit Reporting activity chain will reflect the Notice has generated and will remain at “Record NCP Response to Notice of Reporting” for 40 days.

E. AOC PCSE Review of the Contest

1. Upon receipt of the written contest, AOC PCSE staff will determine:
   1. If the NCP has been mistakenly identified
   2. If the arrears have dropped below $1,000
   3. If the NCP supplied a valid court order exempting him or her from credit bureau reporting
   4. If the case is alimony only
   5. Any other circumstance that may cause arrears to drop below the threshold
2. If any of the above circumstances exists, the credit reporting will be cancelled by AOC PCSE staff by selecting the most appropriate reason from the list of options within the activity chain.  This results in the generation of the Credit Bureau Resolution Notice (CS044B) and the closure of the chain.  A copy of the NCP’s contest and CS044B, along with all supporting documentation, is sent to the county enforcing the case for their file.

   1. Note: Any determination made by AOC PCSE staff must be entered on the NOTE screen.

3. If AOC PCSE staff determines that a further review by the enforcing Vicinge is warranted, the appropriate selection of “Referred to Probation” is made within the activity chain.  This temporarily postpones the credit reporting pending the enforcing Vicinage review and sends an Action Alert to the county RP033 role (Credit Reporting Coordinator) with the case alpha designation.
4. The CS044A (Disposition of Credit Bureau Administrative Review) is mailed to the NCP. The CS044A and CS044C (Credit Bureau Appeal-Request for Review) are mailed to the enforcing Vicinage. The NOTE screen is updated with the date the documents were forwarded.
5. Contests forwarded to the enforcing Vicinage PCSE Unit are those that appear to have a valid outstanding arrears claim requiring local office investigation, including but not limited to:
   1. The NCP made direct payments in which the CPCustodial parent or party acknowledges
   2. A new court order was entered reducing support retroactively
   3. An order was entered vacating child support
   4. The case is a UIFSA case and there appears to be a need for both Responding and Initiating agencies to reconcile accounting records
   5. The NCP supplies evidence that payments were made to the payment processing center but were not credited to the account

   6. Note: Bankruptcy alone is not a valid reason for exemption from credit reporting nor is the fact that credit agency reporting will have an adverse effect on an NCP’s credit record.

F. Vicinage PCSE Staff’s Administrative Review

1. Upon receipt of the contest, staff is to continue investigating the NCP’s claim that his or her account does not qualify for credit bureau reporting.  If the claim can readily be proved valid due to one of the reasons detailed above, Vicinage PCSE staff will advance the chain to generate the CS044B Credit Bureau - Resolution form.  This will close the activity chain and an Informational Alert will be sent to AOC PCSE staff with the credit reporting role.

   1. Note: Vicinage PCSE staff must enter freeform text regarding the reason for the canceling the credit reporting.

2. When Vicinage PCSE staff determines the wrong NCP was selected, all demoraphic information regarding the incorrect person must be corrected on the DEMO screen and the NOTE screen updated with the action.
3. For more complex contests, Vicinage PCSE may conduct an Administrative Review with the parties.  Staff must notify the NCP, CP, and their attorneys (if represented by one) of the time, date, and place of the Administrative Review.
4. If Vicinage PCSE staff is unable to resolve the contest through an Administrative Review, the matter is scheduled for a hearing before a CSHOChild Support Hearing Officer or a judge. If the NCP is not satisfied with the outcome of the CSHO proceeding, he or she may request a hearing before a judge. Vicinage PCSE staff will move the chain as needed to reflect case activities.
5. Upon conclusion of the Administrative Review, Vicinage PCSE staff will update NJKiDS by advancing the chain.  An Informational Alert is sent to AOC PCSE staff with the credit reporting role advising the Administrative Review has been completed.

Note: At time of case closure, staff should choose “NCP no longer eligible for remedy” which will close the chain, but permit the remedy in the future, if appropriate. The NOTE screen must be updated with any relevant information.

Note: “Delete Requested” action from within the NJKiDS chain should only be used by AOC PCSE staff.  Once this option is selected, the case will never again interface for Credit Bureau Reporting.

G. Consumer Credit Reporting Disputes

1. Occasionally, a NCP will contact PCSE staff with a complaint that the child support arrears listed on his or her consumer credit report has wrong or outdated information. As a result, the NCP may request that PCSE staff contact the consumer credit reporting agency to update their records.  In such situations, the NCP should be advised to file a Consumer Credit Reporting Dispute with the consumer credit reporting agency in question.  The consumer credit reporting agency will then contact AOC PCSE staff for verification of the account status.
2. The consumer credit reporting agencies are provided with weekly updates concerning account information (demographic, arrears balance, and date of last payment) through a batch process in NJKiDS. However, the agencies may update their records less frequently. The consumer credit reporting agencies may, on their own accord, add comments to the NCP’s consumer credit report such as “referred to collections”, “seriously past due”, and late payment status (i.e. “30 days late 10 times in the past 12 months”). It is important to remember that such comments are not added by PCSE staff.  The NCP must be informed to file a consumer credit reporting dispute. In situations when an NCP is contesting a Child Support Civil Judgment appearing on their consumer credit report, the NCP must be referred to the Vicinage PCSE Unit Judgment Coordinator regarding the Warrant of Satisfaction process.
3. In order to file a consumer credit reporting dispute, the NCP must obtain a copy, or view online, his or her consumer credit report. Attached to the credit report is a dispute form which the NCP completes and submits to the consumer credit reporting agency. However, if the NCP files a dispute, whether manually or electronically online, that agency should, within five business days, contact AOC PCSE staff for verification.  Only the consumer credit reporting agency can update the NCP’s credit record.  Upon electronic receipt of the dispute, AOC PCSE staff will:
   1. Validate the arrears balance on NJKiDS and last payment;
   2. Validate/update consumer identification information provided by the consumer agency.

NJCSI Handout Materials

For more information and guidance, please refer to the following document:

• Credit Bureau Reporting

 

New Jersey Judiciary Probation Child Support Enforcement, revised 7-2015