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Child Support Enforcement (CSE)

Services: Interest Charges Frequently Asked Questions

General Questions

Possible Questions From The Non-Custodial Parent

General Questions

Q. Please explain interest charges.

A. Each month's support obligation is recorded on the child support computer system as a separate debt. Any month's debt that is not paid in the month when due, becomes an arrearage and will accrue interest.

For example, if $400 is due in the month of July, and no payment is received on this July debt, that debt begins to accrue interest on August 1. If a portion of the $400 July debt is paid, interest will accrue only on the unpaid portion of the debt.

Q. Where can I see copies of the law on interest?

A. Copies of North Dakota Century Code (N.D.C.C.) sections are linked below.

Possible Questions From The Obligee

Q. Do I get the interest charged on arrears I have assigned to the state?

A. If the debt is assigned to the state, the interest accrued on that debt is also assigned to the state. The state will not retain any amount greater than the public assistance that was paid.

Q. My support was ordered in a different state's court. Do I get interest?

A. North Dakota will only charge interest on support that was ordered in a North Dakota court.

Other states may charge interest on their orders. North Dakota will record and enforce any amount of interest that another state reports to us.

Q. My support has been ordered or changed in more than one state. How do I know if North Dakota will charge interest?

A. If an order from another state is modified in a North Dakota court it becomes a North Dakota order. Interest will be charged on the support after the modification.

If a North Dakota order is modified by another state it becomes the other state's order. North Dakota will not charge interest on any support that becomes due after the modification.

Possible Questions From The Non-Custodial Parent

Q. What is the current interest rate?

A. The interest rate for child support is set in state law. See a copy of N.D.C.C § 28-20-34 below. For calendar year 2014, the interest rate is 6.50%.

Q. Will you be charging interest on interest?

A. No. Interest will be charged on the principal balance only (simple interest).

Q. Can taxes be intercepted for interest debts?

A. Yes. The law stated that interest accrued on an unpaid child support obligation is child support. Therefore, it is treated in the same way as all other child support debts.

Q. Will interest balances show on the credit report?

A. The interest will be part of the balance that is reported. It will not be reported as a separate balance.

Q. My employer withholds and sends in my payments. I get paid weekly or every other week, so some months my payments are short, but I always get caught up. Will this cause a problem?

A. Ultimately it's your responsibility to ensure your monthly obligation is met. If income withholding is in place, interest will not accrue on a month's debt as long as at least 90% of that month's debt is paid within that month.

Q. How do I know if you have received my payment?

A. You may check payment information on our automated phone system at (800) 231-4255 or on this website under the Online Services options.

For more information on the laws relating to interest, go to the following links:

 

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