CS 809 Credit Bureau Reporting
06/86 Revised 08/31/16 Training Completed 09/15/16
The Fair Credit Reporting Act (United States Code, Title 15 – Commerce and Trade, Chapter 41 – Consumer Credit Reporting Subchapter III – Credit Reporting Agencies, §1681a(f)) defines a “consumer reporting agency (CRA),” also known as a credit bureau, as:
“any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.”
Federal and State Requirements
Federal regulations found at 45 CFR 302.70(a)(7) require the Office of Recovery Services/Child Support Services (ORS/CSS) to have:
“Procedures for making information regarding the amount of overdue support owed by a noncustodial parent available to consumer reporting agencies;”
Utah law found at U.C.A. 62A-11-327 (Reporting past-due support to consumer reporting agency.) states:
“The office shall periodically report the name of any obligor who is delinquent in the payment of support and the amount of overdue support owed by the obligor to consumer reporting agencies as defined in the Fair Credit Reporting Act, 15 U.S.C. Sec. 1681a(f):
(1) only after the obligor has been afforded notice and a reasonable opportunity to contest the accuracy of the information; and
(2) only to an entity that has provided satisfactory evidence that it is a consumer reporting agency under 15 U.S.C. Sec. 1681a(f).”
1. Notification to Non-custodial Parent (NCP) – On an annual basis, ORSIS automatically generates the Annual Notice of Past-Due Child Support to every NCP with an overdue support obligation. This notice lists the total past-due support amount owed as of the date of the notice, and informs the NCP that CSS will periodically report accrued and accruing past-due support to the credit bureaus. The NCP has the right to contest the amount stated in the notice.
In addition, child support orders satisfy procedural due process requirements of the state and are considered public records. New child support orders and sum-certain judgments taken by CSS include language that states CSS will report the past due amount to the credit bureau.
NOTE: U.C.A. 78B-12-112 and 62A-11-312.5 state:
“Each payment or installment of child or spousal support under any support order, as defined by Section 78B-12-102, is, on and after the date it is due: a judgment with the same attributes and effect of any judgment of a district court . . .”
This means that the definition of a judgment includes sum-certain judgments as well as any arrears that have accrued under a valid child support order.
2. Credit Bureau Reporting – On the last business day of each month, ORSIS automatically and electronically transmits the total liability (current support and arrears) on an NCP’s case to three credit bureaus (TransUnion, Equifax, and Experian) if the case meets the reporting criteria. The liability report is listed as an account in the tradeline section of the consumer’s credit report.
a. Initial Reporting Criteria. A case is reported to the credit bureau for the first time when:
i. The auto enforcement indicator is set to “Y” (Yes, Enforce) on ORSIS;
ii. The IV-A arrears balance is greater than $150.00 or the Non-IV-A arrears balance is greater than $500.00, and the total arrears balance for the case is greater than three times the current support due; and,
iii. The Obligor has a complete address, date of birth and primary social security number on ORSIS.
b. On-going Reporting. Once the case has initially been reported to the credit bureau, monthly reporting will continue on the NCP until:
i. The auto enforcement indicator on ORSIS from “Y” to:
A. “B” – No auto enforcement, bankruptcy;
B. “G” – No auto enforcement , good cause;
C. “H” – Hold auto enforcement; or,
D. “N” – No auto enforcement.
When the auto enforcement indicator changes from “Y” to any of the codes listed above, ORSIS will transmit a delete request to the credit bureau.
ii. The arrears balance reaches $0.00. ORSIS will transmit a delete request to the credit bureau when the arrears balance reaches $0.00; or,
iii. The case closes. When a case is closed for any reason, ORSIS will transmit a delete request to the credit bureau.
NOTE 1: As long as there is an arrears balance and the initial reporting criteria have been met, ORS reports all qualified IV-D and non-IV-D cases once a month, even if the arrears balance is unchanged.
NOTE 2: If there are FEES debts or pending obligations on a case, these amounts will not be included in the reported amount.
NOTE 3: Outgoing intergovernmental cases are not included in credit bureau reporting to prevent double reporting, since the responding state is responsible for credit bureau reporting on the case. If an outgoing intergovernmental record is opened after the case has been reported to the credit bureau, ORSIS will transmit a delete request to the credit bureau.
Disputes of ORS/CSS Information on Credit Reports
Consumers are entitled to dispute information which appears on their credit reports in accordance with 15 U.S.C. §1681i, Procedure in case of disputed accuracy. Most consumer disputes involving CSS come from NCPs and center around the past-due amount that CSS has reported to the credit bureau(s) and/or payments that may have been made on the debt. Occasionally a current spouse or an ex-spouse will dispute an NCP’s past-due debt that shows incorrectly on his/her credit report.
The consumer should contact the credit reporting agencies (CRAs) listed below to file a credit history dispute:
· Experian 1-888-397-3742
· Equifax 1-800-685-1111
· TransUnion 1-800-916-8800
After the consumer files a credit history dispute with a CRA, the CRA initiates Automated Credit Dispute Verification (ACDV) on behalf of the consumer and sends the dispute to ORS. ORS receives the dispute electronically via the Online Solution for Complete and Accurate Reporting (e-OSCAR). E-OSCAR is a browser-based, online, data correction system.
E-OSCAR is accessed by the ORS program. When the program specialist receives notification of a dispute, s/he performs the necessary research and responds directly to the CRA through e-OSCAR.
In order to meet the intent of the Fair Credit Reporting Act, the program specialist must respond as soon as a dispute is received from the CRA.
Accessing Credit Reports
Authorized CSS agents may access partial credit bureau reports to obtain address information on NCPs. When you access a full credit report on a person, a record of the ORS inquiry becomes a part of that person’s credit report. Partial credit reports do not include the financial information and are primarily used for locate purposes as they do not become a part of that person’s credit report.
NOTE: The Work Number locate resource is owned and maintained by Equifax, another consumer reporting agency. While ORS contracts with Experian for consumer reporting services, Work Number information should be considered a consumer report because it is owned and maintained by Equifax.