(1) A private child support collector may not charge an obligee a fee unless:
(a) Before the obligee authorizes the fee, the amount of the fee, including the basis upon which the amount of the fee is calculated, is described accurately to the obligee in simple, easy-to-understand language; and
(b) Before the obligee incurs the fee, the obligee has authorized the fee in writing.
(2) A collector's contract with an obligee shall be for a specific dollar amount of child support to be collected. The contract shall explain in easy-to-understand language how the amount is to be calculated and may include any statutory interest to which the obligee is entitled and other amounts ordered by the court.
(3) A collector may charge a contingency fee for the collection of child support that is based on a percentage of the total child support collected.
(4) The maximum fee that may be charged by a collector as specified in subsection (3) of this section shall not exceed thirty-five percent of any amount collected.
(5) No other fees, charges, or costs may be assessed against the obligee, including an application fee.
Source: L. 2017: Entire article added with relocations, (HB 17-1238), ch. 260, p. 1108, � 2, effective August 9.
Editor's note: This section is similar to former � 12-14.1-105 as it existed prior to 2017.
5-17-106. Requirements relating to private child support enforcement service contracts. (1) In order to perform a child support enforcement service for an obligee, a collector shall enter into a written private child support enforcement service contract that:
(a) Meets the requirements of this section;
(b) Has been delivered to the obligee in a form that the obligee may keep;
(c) Is dated and signed by the obligee and an authorized representative of the collector;
(d) Fully discloses each term of the contract, any fees that may be imposed pursuant to the contract, and any amount that the obligee would be required to pay to the collector for services performed under section 5-17-109 if the contract were to be canceled or terminated by the obligee; and
(e) Includes a copy of any other document the collector requires the obligee to sign.
(2) Before a collector offers or proposes to perform a child support enforcement service for an obligee, the collector shall deliver to the obligee the notice developed pursuant to the rule-making described in section 5-17-113 and shall obtain signed verification from the obligee that the obligee received the notice described in section 5-17-113.
(3) A private child support enforcement service contract shall contain the following:
(a) A clear and accurate explanation of the amount of child support that will be collected;
(b) A clear description of the child support enforcement services that may be provided pursuant to the contract;
(c) A clear and accurate explanation of the fees that will be deducted and an example of how they are deducted;
(d) A good-faith estimate of the total amount of fees that will be charged pursuant to the contract;
(e) The full legal name, principal business address, and telephone number of the collector and any agents who assist the collector in providing a child support enforcement service and any separate name, address, and telephone number that the obligee may need for communication about the case;
(f) A complete and accurate copy of each disclosure and notice required by this article 17 to be provided to the obligee before the obligee signs the contract;
(g) A conspicuous statement in bold-faced type, in immediate proximity to and on the same page as the space reserved for the signature of the obligee, which shall read as follows:
You may cancel this contract at any time within thirty days of signing the contract or after any twelve consecutive months in which the collector fails to make a collection.
(h) An explanation that the contract may be in effect for an extended period of time because of the difficulty in estimating how long it will take to collect the full amount of child support due under the contract; and
(i) A statement that a collector may not assess fees on collections attributable to a federal, state, or county agency. Fees improperly retained shall be refunded within seven business days.
(4) A private child support enforcement service contract shall not include:
(a) A mandatory arbitration clause that limits the rights of a person to seek judicial relief for a claim arising under the contract or this article 17;
(b) A clause that requires the obligee to change the payee or redirect child support payments that would otherwise be payable to the obligee, a state agency administering a state plan approved under Title IV-D of the federal Social Security Act, as amended, or a central payment registry, if payment is ordered to be made through a central payment registry;
(c) A clause that requires the obligee to close, or not open, a child support case with a county delegate child support enforcement unit or state agency administering a state plan approved under Title IV-D of the federal Social Security Act, as amended; and
(d) A clause that requires the obligee to waive his or her rights to review and consent to any modification of a contract entered into by the obligee.
(5) A private child support enforcement contract may not be modified by subsequent agreement unless the obligee has signed the subsequent agreement after receiving a written copy of the modifications.
(6) A private child support enforcement service contract shall be accompanied by a form, in duplicate, that has the heading notice of cancellation and contains a description of, in easy-to-understand language, the cancellation and termination provisions contained in section 5-17-109, the cancellation rights of the consumer obligee contained in section 5-17-109, and the principal business address of the collector.
(7) A collector who enters into a contract with an obligee shall retain a copy of the signed contract and the statement signed by the obligee acknowledging receipt of the preliminary notice required by subsection (2) of this section for a period of five years after the completion or settlement of the collection efforts by the collector or termination of the contract, whichever event occurs first.
Source: L. 2017: Entire article added with relocations, (HB 17-1238), ch. 260, p. 1109, � 2, effective August 9.
Editor's note: This section is similar to former � 12-14.1-106 as it existed prior to 2017.