Child Support Collections: Who Really Benefits?

We're told child support is money for kids. But the system built to collect it often operates like a business, where fees and profits come first.

Here’s how the money really flows.

Private Collection Agencies (PCAs)

These are for-profit debt collectors, not child advocates. • Commission: Typically 25–33% (and can be as high as 40%) of every dollar they collect. • Upfront Fees: Many charge "application fees" of $100–$500, recouped from future payments before you see a cent.

Example: On a $1,000 payment, the custodial parent may only receive $670–$750. The agency pockets the rest.

Government Agencies (IV-D Enforcement)

Even state-run systems prioritize cost recovery. Federal law allows them to charge fees to fund their own bureaucracy. • Annual Fees: $25–$35 is standard just for having an open case. • State Surcharges: States take an additional cut of collections: • Minnesota: ~2% • Arkansas: ~13% • Texas: $35 annual fee + $3/month processing fee. Example: On a $1,000 payment, after fees, the parent might only get ~$870 (AR) to ~$955 (MN).

Agencies profit first, children come second. • Custodial parents—often single mothers—receive less than the court awarded, while agencies and states pocket the difference. • A system created for the "best interest of the child" has become a revenue stream for others.

Reality Check: This isn't just about supporting children—it's about sustaining a profitable industry. Parents and kids are the ones who lose.

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