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FOR IMMEDIATE RELEASE
PR- 337-03
November 26, 2003

MAYOR MICHAEL R. BLOOMBERG SIGNS LEGISLATION MAKING IT EASIER FOR SINGLE PARENTS TO COLLECT CHILD SUPPORT

Remarks by Mayor Bloomberg at a Public Hearing on Local Law

“The first bill before me today is Introductory Number 409-A, sponsored by Speaker Miller and Councilmembers Boyland, Gioia, Baez, Brewer, Clarke, Comrie, Gerson, Jackson, Katz, Koppell, Liu, Martinez, Nelson, Perkins, Quinn, Recchia, Reed, Sears, Serrano, Stewart, Vann, Weprin and Yassky. This legislation clarifies and expands existing regulations regarding the practices of debt collection agencies that collect unpaid orders of child support, and creates disclosure requirements for such debt collection agencies.

“For a single parent in New York City, who is owed a large amount of back child support, there are two options available to get help with collecting payments. The first is the Office of Child Support Enforcement (OCSE) within the Human Resources Administration. The City, through OCSE, provides specific services that are available to families, free of charge. For fiscal year 2003, OCSE collected $488 million on behalf of its clients. While the City meets its responsibility by ultimately recovering 80% of child support orders, there are some families that choose to use another method of collection. Some parents choose to hire a private collection agency.

“Unlike other debt collection agencies, child support collection agencies are generally not covered by federal law, specifically the Fair Debt Collection Practices Act, and State and Local Consumer Laws. As a result, many of these agencies make up an industry that is characterized by a range of predatory practices such as charging exorbitant fees, general harassment, and making it nearly impossible to cancel the contracts. Ultimately, these practices and the contract terms of these private collection agencies are not consumer-friendly and wind up hurting the very clients they are suppose to help. 

“This bill includes child support payments as consumer debt under the City’s collection agency licensing law and makes sure these agencies clearly disclose to prospective clients information about key terms and conditions set forth in the contract.

“This legislation will ensure that custodial parents and their children are afforded basic consumer protections and are not taken advantage of by unscrupulous debt collection agencies. I would like to thank Coucilmember Tracy Boyland, Andy Eiler from the Department of Consumer Affairs, Andrea Berger from the Law Department and Desiree Peterkin from City Legislative affairs.”







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