Law: Child Support Payments Now Deposited on Debit Cards

2006-06-15 / News

The Department of Human Services Office of Child Support in coordination with the Friends of the Court in 32 northern countries, including Mackinac County, will begin disbursing some child support payments through a debit card beginning May 25, in accordance with state law. This new law requires all child support payments to be electrically disbursed via direct deposit into a personal checking/ savings account or to a debit card, unless recipients meet hardship exception criteria.

Customers who currently receive paper checks in these counties have received information in the mail, and were given the choice of direct deposit to their checking/savings account or to debit card. Paper child support checks will no longer be sent out to customers, unless they meet the hardships exceptions described in the law.

Before implementation of the law, about 30 percent of child support recipients in the state had their payments directly deposited into their personal checking or savings accounts. Customers currently participating in direct deposit are not required to switch to the debit card.

The new VISA debit cards, which will be issued at no cost to the customer, can be used like any other bank or credit union card at millions of locations that accept VISA debit cards without incurring any fees.

In states with electric disbursement already in place, about twothirds choose direct deposit to checking/savings and one-third choose direct deposit to debit cards.

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