Arizona Department of Financial Affairs Obtains Consent Decree Against Child Support Network, Inc.
/Child Support Network, Inc., an Arizona collection agency, recently entered into a Consent Decree with the Arizona Department of Financial Affairs, the regulator of Arizona collection agencies. The Decree was the result of Child Support Network’s misrepresentation of available remedies to enforce collection of a child support order, including threatening jail time and suspension of driver’s license, continued contact with the debtor’s employer, and contact with the debtor’s father threatening jail time if the father did not pay the debt.
Since this debt was for child support, there would be no remedies under the Fair Debt Collection Practices Act or FDCPA — the FDCPA requires that the debt or obligation arise out of a transaction in which the money, property, insurance, or services are primarily for personal, family, or household purposes. However, many of the tactics used by Child Support Network are regularly employed by third party collection agencies and by junk-debt buyers collecting on consumer debts and would violate the FDCPA.
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