Child Support Collection by Financial Institution Data Match
Monday / May 21, 2007
Accounts at financial institutions can be seized to
pay past-due child support.
The South Bend (Indiana) Tribune reported today that in April
2007, the Child Support Division of the St.
Joseph County prosecutor’s office collected more
than $154,000 in back child support by using the
Financial Institution Data Match (FIDM) program.
What is the FIDM? The FIDM is a federal law that requires financial institutions to report to the state the name, record address, Social Security number, other taxpayer identification number, or other identifying information for any person who owes child support who maintains an account at the institution. The state can then levy upon, or in other words, seize, whatever money is in those accounts to apply to past-due child support.
The FIDM does not apply just to banks. It applies to federal and state credit unions, certain broker-dealers, benefit associations, insurance companies, safe deposit companies, money-market mutual funds and the like.
The state may levy upon financial institution accounts to pay past-due child support even if the person paying child support is making his or her current payments in full. The only requirement is that there be a child support arrearage.
The St. Joseph County experience is not unusual. State and counties often collect substantial sums of money through the FIDM.
What is the FIDM? The FIDM is a federal law that requires financial institutions to report to the state the name, record address, Social Security number, other taxpayer identification number, or other identifying information for any person who owes child support who maintains an account at the institution. The state can then levy upon, or in other words, seize, whatever money is in those accounts to apply to past-due child support.
The FIDM does not apply just to banks. It applies to federal and state credit unions, certain broker-dealers, benefit associations, insurance companies, safe deposit companies, money-market mutual funds and the like.
The state may levy upon financial institution accounts to pay past-due child support even if the person paying child support is making his or her current payments in full. The only requirement is that there be a child support arrearage.
The St. Joseph County experience is not unusual. State and counties often collect substantial sums of money through the FIDM.
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