Division of Financial
Practices
~
Clarke W. Brinckerhoff
Attorney
~
202-326-3224
|
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
|
|
August 6, 1999
Llewellyn Woolford, Jr.
Office of the General Counsel
U.S. Dept. of Health and Human Services
Room 411D, Hubert H. Humphrey Bldg.
200 Independence Avenue SW
Washington, DC 20201-0004
Dear Mr. Woolford:
This responds to your inquiry as to whether Section 604(a)(3)(A)
of the Fair Credit Reporting Act ("FCRA") authorizes
a state child support enforcement agency ("CSEA") to
procure credit reports on child support debtors in connection
with the enforcement of child support orders.
Section 604(a)(3)(A) permits creditors or debt collectors to
obtain consumer reports in connection with collection of credit
accounts. In its Commentary on the FCRA, the Commission stated
its view that a "child support agency may obtain a consumer
report in connection with enforcement of the report subject's
child support obligation, established by court ... orders, since
the agency ... is, in effect, collecting a debt."(1)
This interpretation of Section 604(a)(3)(A) is a corollary to
the Commission's view, also stated in the Commentary,(2)
that the provision allows a judgment creditor the same access
to consumer reports as a consensual creditor. Pursuant to that
analysis, a CSEA that is acting to enforce payment obligations
imposed by child support orders (either in its own right or on
behalf of a custodial parent) has a permissible purpose to obtain
a consumer report on the parent subject to the order.
One provision of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193, Title III, Subtitle
F, Section 352), which was signed into law on August 22, 1996,
added two new subsections that provide agencies with additional
authority to obtain consumer reports in connection with their
duties relating to child support awards. Section 604(a)(4) now
grants state and local CSEAs the authority to obtain consumer
reports to establish an individual's capacity to make child support
payments and to determine the amount of the payments. Section
604(a)(5) allows certain other state agencies to obtain consumer
reports in order to set or modify a child support award. In our
view, these additional provisions -- permitting child support
authorities to obtain consumer reports on parents in connection
with the assessment of child support obligations -- in
no way detract from the existing right of such authorities under
Section 604(a)(3)(A) to obtain reports to assist in enforcement
of final orders.
For the reasons set forth above, we believe that Section 604(a)(3)(A)
of the FCRA permits a CSEA to obtain consumer reports on child
support debtors in connection with the enforcement of child support
orders. The opinions set forth in this informal staff letter are
not binding on the Commission.
Sincerely yours,
Clarke W. Brinckerhoff
Endnotes:
1. 16 C.F.R. 600 Appendix,
55 Fed. Reg. 18,804, 18,815 (May 4, 1990); comment 604(3)(A)-3.
In the original FCRA, this provision was Section 604(3)(A). It
was not changed substantively in the 1996 amendments, but was
re-designated Section 604(a)(3)(A) at that time
when Subsections (b), (c), (d), (e), (f), and (g) were added to
Section 604.
2. Id., comment
604(3)(A)-2.
|