Child Support Collector Defied Court Order To Keep Collecting from Parents, State Say

[frostyboy]

From The Courthouse News Service:

Child Support Collector Defied Court Order To Keep Collecting
from Parents, State Say

Virginia claims a Texas-based child support collection agency
defied a court order to funnel child-support payments to itself
instead of the state. The Virginia attorney general says it's not
the first time he's sued the company "to stop the widespread
illegal collection practices of Supportkids."

Attorney General William Mims says Supportkids violated Virginia
law by misleading parents and employers into sending money to
it instead of the state. Mims says "Old Supportkids" operated as
Child Support Enforcement. He sued it "and demanded that Old
Supportkids return child support payments that it took unlawfully from children and the Commonwealth."

Mims claims that after Old Supportkids was enjoined from its illegal business, transferred "all of its useful and valuable assets" to a Dallas company, Parent Financial Services, and then declared bankruptcy. New Supportkids then acquired all of Old Supportkids' assets, changed its name to Supportkids Services, and resumed its illegal "services," operating out of the same office as the Old Supportkids.

The attorney general says Supportkids Services fka Child Support Enforcement instructed parents and employers to make payments to it, though Virginia law requires that all child support payments be made to Virginia's Social Service Child Support Enforcement Division.

Supportkids made deals with Virginia parents in which it would receive a "case development fee" of $475 plus a "service fee" of 34 percent of each payment received from a non-custodial parent, according to the complaint in Richmond City Court.

All the service's fees came directly from child support payments regardless of the amount of effort the service put into collecting and regardless of how much of the payment had been designated solely for support, the state says.

Some Virginia courts have refused to credit noncustodial parents for the fraction of the payments that went as fees to the service, leaving the parents liable for support already paid, the attorney general says. Social Services has lost track of some of the payments and so cannot credit parents.

Supportkids' agreement gives it power of attorney and full rights to all aspects of a case, including decision-making power above that of the custodial parent, the attorney general says.

Under Virginia law, support payments belong to the child, not to the custodial parent.

The state seeks declaratory relief and an injunction, alleging conversion, fraud, unjust enrichment and disgorgement of more than $800,000 in fees it unlawfully collected.

Gov. Timothy Kaine, Attorney General William Mims, and the Department of Social Services are represented by Thomas Wolf.

SupportKids is based in Austin.

[Marx]

Who'd have ever thought of using C$A as a money-spinner... uhmmm lol

[rohara]

The attorney general says Supportkids Services fka Child Support Enforcement instructed parents and employers to make payments to it, though Virginia law requires that all child support payments be made to Virginia's Social Service Child Support Enforcement Division.

Supportkids made deals with Virginia parents in which it would receive a "case development fee" of $475 plus a "service fee" of 34 percent of each payment received from a non-custodial parent, according to the complaint in Richmond City Court.

All the service's fees came directly from child support payments regardless of the amount of effort the service put into collecting and regardless of how much of the payment had been designated solely for support, the state says.

Some Virginia courts have refused to credit noncustodial parents for the fraction of the payments that went as fees to the service, leaving the parents liable for support already paid, the attorney general says. Social Services has lost track of some of the payments and so cannot credit parents.

If anybody had any doubts that the child support system in this country is about the "best interests of the child" than this should clear it up for them. Like in all such paradigms, the draconian laws put in place by fanatics have allowed parasitic elements to run roughshod over innocent people (mostly men and children) and loot untold sums for themselves.