Brochures
Private Collection Agencies
What is a Private Collection Agency (PCA)?
A private collection agency (PCA) is a privately-owned, for-profit business that, for a fee, helps parents collect child support.
Some customers choose to hire PCA’s in addition to, or instead of, using the Office of the Attorney General, Child Support Services Division (CSSD) to obtain child support.
CSSD wants to help parents make an informed choice, with full knowledge of the fees and other terms and conditions levied by the private entity.
Is a PCA Right For You?
The choice whether to pursue support enforcement with a public or private entity rests with the parent. This publication answers commonly asked questions about PCA’s and provides a list of helpful hints to assist parents in deciding whether a PCA is right for them.
How Much Does a PCA Cost?
Contingency Fees - Fee arrangements vary among companies. Most PCA’s are paid on a "contingency fee" basis. This means that you are not required to pay the PCA for its services in advance, but the PCA will take a percentage of the child support it receives on your behalf after a contract is signed. These contingency fee rates generally range from 25 to 33 percent.
Collections - Depending on the contract, a PCA may collect fees on any amounts received by the PCA, even if the money was collected as a result of the work of the CSSD.
Current Child Support - PCA’s generally collect contingency fees on past-due support owed to you. However, some PCA’s also take fees from current child support paid monthly and on time by the NCP. Some, though, will not take a fee on current support if the NCP has made payments on a regular basis prior to your case being placed with the PCA.
Application/Processing Fees - PCA’s may also charge application or processing fees or charge additional fees—for example, if they need to use a lawyer for your case. You should read the contract carefully to make sure that you understand how the PCA will be paid.
Child Support Services Division:
If you are receiving Temporary Assistance for Needy Families (TANF), foster care maintenance, or Medicaid, CSSD is required to pursue support enforcement on your behalf. You may also hire a PCA.
A parent can hire a PCA even if they already received services from CSSD. A parent is entitled to receive services from CSSD even if they also retain a PCA.
A PCA may require that you close your case with the CSSD as a condition of your contract.
CSSD does not require that you close your case if you hire a PCA.
CSSD does not charge 25 to 33 percent contingency fees or charge for lawyers.
PCA Contracts:
Length of Contracts - The duration of the contract should be defined clearly in the contract. Many PCA contracts last until a stated, total dollar amount of child support is collected. Most PCA’s will continue to receive the contingency fee, ranging from 25 to 33 percent of payments, until all arrearages have been paid in full.
Rescission of Contracts - Your right to cancel the agreement depends upon the terms of the contract and any state laws governing such contracts. Most PCA’s will permit unconditional cancellation (or "rescission") of a contract for a limited period of time after you have initially signed the contract. Further, a PCA may allow you to cancel the contract after the rescission period, but only if it is unsuccessful in collecting child support. Be sure that you understand how you can cancel the contract and any penalties or other liabilities that you may face.
TANF Recipients:
You may retain a PCA if you are a current or former recipient of TANF or Aid to Families with Dependent Children (AFDC). You may retain a PCA if you receive foster care maintenance or Medicaid. Under Federal law, DC is entitled to receive child support payments as reimbursement for any public assistance received for your child. Therefore, while you are receiving assistance, you are only entitled to receive child support collected by CSSD or the PCA in excess of amounts received as current support in a given month.
Are PCA's Regulated by the Government?
In general, PCA’s practices are not regulated by state or federal authorities. However, some states do regulate their practices, including requiring a collection license or capping the contingency fee rates that they can charge. Ask CSSD or your Better Business Bureau for more information.
Questions
If you have further questions regarding PCA’s please contact the Office of the Attorney General, Child Support Services Division, Customer Service Unit at (202) 442-9900.
