CSS Letter 04-27: Financial Institution Data Match and Bank Levy Program (12/1/04)

On December 1, 2004, DCSS issued CSS Letter 04-27, which implements the new requirement to do bank levies for child support arrears even when the the noncustodial parent is in compliance with the order for current support. The letter indicates that about 36,000 thousand notices will be mailed to NCPs who were previously not subject to bank levies demanding payment or they will be submitted for bank levy. The first $3,500 in a bank account is exempt without making a claim, as are cases where the NCP has filed bankruptcy or receives SSI. A claim of exemption can be made for accounts with over $3,500 based on financial hardship, which is not further defined in the letter or the statute. The NCP can either contact the Franchise Tax Board at (866) 820-5408 or the Local Child Support Agency. A formal claim of exemption (Judicial Counsel forms EJ 160 and 165) must be given to the LCSA prior to disbursement of the funds levied. The Letter states that the LCSA will file the claim of exemption in court if they oppose it. [Download]