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This topic contains information on the following subjects:
1. An overview of automatic bank drafts;
2. The process for requesting an automatic bank draft;
3. How automatic bank drafts are processed;
4. The posting/allocation of automatic bank drafts for child support payments;
Noncustodial parents (NCPs) who are not under an income withholding order have the option of making their child support payments through automatic bank drafts. Payment by bank draft CANNOT be substituted for income withholding in cases that qualify for withholding (per G.S. 110.136.3).
Automatic bank drafts are the withdrawal of funds from an NCP's checking account using EFT (Electronic Funds Transfer). Bank drafts eliminate the possibility of lost or misapplied payments and generally shorten the time between when a payment is made and when the funds are disbursed.
To request automatic bank drafts, NCPs must complete an N.C. CSE Automatic Withdrawal Authorization Form For Bank Draft. NCPs can obtain this form online at the eChild Support web site: http://www.ncchildsupport.com .
When completing the authorization form, NCPs should enter their name, Social Security number, MPI number, mailing address, home and/or work telephone number(s), valid email address, the financial institution’s name, telephone number, routing number, account number, and type of account.
NCPs must indicate whether the funds should be drafted either on a MONTHLY or SEMI-MONTHLY basis, the desired day(s) of the month when funds should be drafted, and the amount to be drafted. For a MONTHLY bank draft, NCPs must enter ONE date (EX: 1st) and the amount; for a SEMI-MONTHLY draft, NCPs must enter TWO dates (EX: 3rd and 18th) and the amount. Next NCPs must enter the name and location of the financial institution and sign and date the form. A "VOIDED" blank check from the financial institution where the funds are to be drafted must be attached to the form.
Mail the form and attached materials to:
N.C. Child Support Centralized Collections
P.O. Box 900020
Raleigh, N.C. 27675
Or fax to: (919) 789-0140
Any questions can be referred to Customer Service at (1-877-361-5437).
Bank draft authorization forms are processed by the contracted vendor that is responsible for processing payments. The "pre-note" process takes ten (10) days while the routing and checking account numbers are verified.
During the pre-note period, the NCP is still responsible for making child support payments that are due before the initial draft date. If the date the NCP selects for the initial draft is on a weekend or holiday, the draft date is the next business day. Draft payments are sent on receipt files to ACTS on the same day that the payment is drafted from the NCP's bank account.
NCPs are only allowed one NSF bank draft incident. If the NCP is no longer allowed to pay through bank draft, the DHHS Controller's Office then sends a file with this information to ACTS, where it is stored for future reference.
NCPs who have questions about NSF can contact SMI at 1-877-361-5437.
ACTS receives an EFT receipt file from the contracted vendor that is responsible for processing payments on the same day that funds are drafted from the NCP’s account. The system then posts the funds.
The payment effective date is set to the date when the payment was posted. Automatic bank draft payments are prorated and allocated among all of the payor's obligations, regardless of case type or income withholding status. Bank draft payments are distributed according to the current rules of distribution.
Upon the NCP’s request, automatic bank drafts from financial institutions can be changed or terminated. NCPs could request a change/termination for various reasons: a change in financial institution, a change in the checking account number, or the NCP wants to cancel bank draft processing. (For example, NCPs who are ordered to make payments through income withholding are responsible for requesting the termination of their bank drafts.)
NCPs can make changes to or terminate their automatic bank drafts online by accessing the eChild Support web site: http://www.ncchildsupport.com . NCPs can also download the N.C. CSE Automatic Withdrawal Authorization Form for Bank Draft from this web site.
Mail or fax requests for any changes to:
N.C. Child Support Centralized Collections
P.O. Box 900020
Raleigh, NC 27675
FAX: (919) 789-0140
When completing the authorization form, NCPs enter their name, Social Security number, MPI number, mailing address, home and/or work telephone number(s), valid email address, the financial institution's name, telephone number, routing number, account number, and type of account. (The payor's SSN and MPI numbers that are used to register MUST match the SSN and MPI numbers in the N.C. Payment Web Site database.)
NCPs are still responsible for making their child support payments until the new bank draft record becomes active. NCPs should work with their banks to ensure that any outstanding bank drafts are honored during this transition period.
If the request is to terminate automatic bank draft payments, NCPs must go online to make the change or submit the authorization form by mail or fax.
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For questions or clarification on any of the policy contained in these manuals, please contact your local county office. |
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