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NOW

Privatizing Child Support Collection a Truly Bad Idea:

Statement of the National Organization for Women

May 18, 2000



In reviewing the Child Support Distribution Act of 2000, H.R.4469, the National Organization for Women finds that very few improvements have been made for child support enforcement efforts, while many more problems are created – especially for women and their children, the supposed beneficiaries of this bill.  In fact, families will get LESS money under a privatized system where unregulated private collection companies keep 30 to 40% of the funds secured from parents owing support payments.  As we have seen from experiences in various states where private collection companies operate in child support payment collection, some families get nothing back – even after paying hefty fees for those services!  H.R. 4469 will subject vulnerable families to potentially unscrupulous collection companies.

More importantly, in many cases, the safety and well-being of families will be risked by likely breaches of privacy.  The critical need to closely guard private information for custodial parents cannot be overstated; numerous studies have carefully documented the extent of domestic violence experienced by women receiving public assistance and in the welfare-to-work process. Nearly one in three reports that this has been a serious problem.  Many single mothers attempting to establish self-sufficiency cannot withstand the consequences of having their battering ex-partner know of their whereabouts.  At the same time, non-custodial parents owing child support could be hurt by these unregulated private collectors who would have access to IRS status, passport availability, banking and credit records.

In addition to questionable changes to the child support collection system proposed in H.R. 4469, there is also a seriously flawed fatherhood grant program hidden among its various provisions. NOW spoke out last year against almost identical legislation, the Fathers Count Act, that would provide funding to so-called fathers' rights groups to promote their political agenda.  Despite some promised minor improvements in the language encouraging grantees' communication with local domestic violence networks or shelters, there is little else in the proposal to recommend it. Similar programs, which were intended to aid poor fathers in finding jobs, paying child support and developing stronger relationships with their children were shown to have minimal impact.  The Parents Fair Share Demonstration Projects were conducted in a half dozen cities during the 1990s.

That poor, non-custodial fathers with few employable skills are in serious need of help is undeniable. The same is true of poor, custodial mothers. Such a major national initiative should be carefully crafted, based on the knowledge gained from similar efforts.  A serious commitment of government funds to aid poverty-stricken, under- and unemployed non-custodial parents who want to support their children would be welcome. The proposal incorporated in H.R.4469 is not the answer.

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