(a) Any contract for the collection of child support between a private child support collector and an obligee shall be in writing and written in simple language, in at least 10-point type, signed by the private child support collector and the obligee. The contract shall be delivered to the obligee in a paper form that the obligee may retain for his or her records. The contract shall include all of the following:
(1) An explanation of the fees imposed by contract and otherwise permitted by law and an example of how they are calculated and deducted.
(2) A statement that the amount of fees to be charged is set by the agency and is not set by state law.
(3) A statement that the private child support collector cannot charge fees on current support if the obligee received any current child support during the 6 months preceding execution of the contract with the private collector.
(4) An explanation of the nature of the services to be provided.
(5) The expected duration of the contract, stated as a length of time or as an amount to be collected by the collection agency.
(6) An explanation of the opportunities available to the obligee or private child support collector to cancel the contract or other conditions under which the contract terminates.
(7) The mailing address, street address, telephone numbers, facsimile numbers, and Internet address or location of the private child support collector.
(8) A statement that the private child support collector is not a governmental entity and that governmental entities in California provide child support collection and enforcement services free of charge.
(9) A statement that the private child support collector collects only money owed to the obligee and not support assigned to the state or county due to the receipt of CalWORKs or Temporary Assistance to Needy Families.
(10) A statement that the private child support collector will not retain fees from collections that are primarily attributable to the actions of a governmental entity or any other person or entity and is required by law to refund any fees improperly retained.
(11) A statement that the obligee may continue to receive, or may pursue, services through a governmental entity to collect support, and the private child support collection agency will not require or request that the obligee cease or refrain from engaging those services.
(12) A notice that the private child support collector is required to keep and maintain case records for a period of four years and four months, after the expiration of the contract and may thereafter destroy or otherwise dispose of the records. The obligee may, prior to destruction or disposal, retrieve those portions of the records that are not confidential.
(13) A “Notice of Cancellation,” which shall be included with the contract and which shall contain, in the same size font as the contract, the following statement, written in the same language as the contract:
| “Notice of Cancellation |
|---|
| You may cancel this contract, without any penalty or obligation, within 15 |
| business days from the date the contract is signed or you receive this notice, |
| whichever is later, or at any time if the private child support collector |
| commits a material breach of any provision of the contract or a material |
| violation of any provision of this chapter with respect to the obligee or the |
| obligor, or _____________________________ (all other reasons for |
| cancellation permitted). |
| To cancel this contract, mail or deliver a signed copy of this cancellation |
| notice or any other written notice to ______________________(name of |
| private child support collector) at |
| ____________________________________________ (address for mail or |
| delivery) no later than midnight on ______________(date). |
| I am canceling this contract.______________(date) |
| ________________________(signature)” |
(14) The following statement by the obligee on the first page of the contract:
“I understand that this contract calls for (name of private child support collector) to collect money owed to me, and not money owed to the state or county. If child support is owed to the state or county because I am receiving or have received program benefits from CalWORKs or Temporary Assistance to Needy Families, then (name of private child support collector) cannot collect that money for me. If I start to receive program benefits from CalWORKs or Temporary Assistance to Needy Families during this contract, I must notify (name of private child support collector) in writing.”
“I declare by my signature below that the child support to be collected for me pursuant to this contract is not assigned to the state or county as of the time I sign this contract. I agree that I will give written notice to the private child support collector if I apply for program benefits under CalWORKs or Temporary Assistance to Needy Families during the term of this contract.”
(15) (A) The following statement by the obligee immediately above the signature line of the contract:
“I understand that (name of private child support collector) will charge a fee for all the current child support and arrears it collects for me until the entire contract amount is collected or the contract terminates for another reason. I also understand that depending on the frequency and size of payments, it could take years for the amount specified in my contract to be collected. This means that if (name of private child support collector) is collecting my current support by wage withholding or other means, I will not receive the full amount of my periodic court-ordered current support until the contract terminates since (name of private child support collector) will be deducting its fee from the periodic court-ordered current support it collects for me.”
(B) The statement required by subparagraph (A) shall:
(i) Be in a type size that is at least equal to one-quarter of the largest type size used in the contract. In no event shall the disclosure be printed in less than 8-point type.
(ii) Be in a contrasting style, and contrasting color or bold type, which is equally or more visible than the type used in the contract.
(b) The disclosures required by paragraph (1) of subdivision (a) of Section 5612 shall be printed in the contract, as follows:
(1) In a type size that is at least equal to one-quarter of the largest type size used in the contract. In no event shall the disclosure be printed in less than 8-point type.
(2) In a contrasting style, and contrasting color or bold type that is equally or more visible than the type used in the contract.
(3) Immediately above, below, or beside the stated fee without any intervening words, pictures, marks, or symbols.
(4) In the same language as the contract.
(Added by Stats. 2006, Ch. 797, Sec. 1. Effective January 1, 2007.)
Last modified: October 25, 2018