State changing child support factors
Journal-Courier
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The Illinois Department of Healthcare and Family Services is changing the way it determines interest on child support obligations, moving from automatically assessing interest to assessing only when ordered by the court.
In announcing the change Wednesday, the department said it is designed to “remedy an inequity between low-income families served by the department and families with private child support arrangements.”
Illinois is one of 15 states that automatically charged interest. The department determined the arrangement was disproportionately affecting Blacks and low-income families. Newsletter Signup
SPRINGFIELD â The state is no longer charging interest on late child support payments that are made through the Department of Healthcare and Family Services unless itâs ordered by a court, and all of the outstanding interest charges that those parents owed have been zeroed out.
A spokesman for the agency said in an email that the total accrued interest penalties that were eliminated amounted to just over $2.7 billion.
DHFS made that announcement Monday, saying those interest charges fell disproportionately on low-income families and people of color.
âThis is a prime example of how an equity lens can be used to advance the financial well-being of our customers,â DHFS Director Theresa Eagleson said in a statement. âThere really was no reason that families served by our department should be penalized with a 9% interest rate when families who can afford to be served through private child support arrangements arenât automatically charged interest on their