Intrest rate increases in child support South Carolina

[hittingrabbit]

What is the name of your state? South Carolina.
I was unable to respond in retaliation from a senior members reply that increases in child support was incorrect but the topic was closed.
So Id like to provide proof that such laws do exist despite being usury in nature.
heres the South Carolina law that was created and the direct notification from the clerk of court notifying a defendent of the increase.

"Effective July 1, 2002, section 20-7-1440(c)
of the South Carolina Law increases the collection costs for child support and alimony from 3% to 5%.
This increase applies to existing orders, as well as orders filed on or after the effective date of the legislation."

This 5% is added into the intrest rates of child support arrearages in the state of South Carolina.
While I realise the notice states an increase in the collection amount,but with it being applied as a form of intrest in collections(%) in which is charged whether an individual is being enforced to pay or not,is a form of intrest being charged to those whom the collection process is not being burdend by refusing to pay.
In otherwords those whom pay on time without fault are having to pay for those whom refuse willfully not to pay.

 

[LdiJ]

What is the name of your state? South Carolina.
I was unable to respond in retaliation from a senior members reply that increases in child support was incorrect but the topic was closed.
So Id like to provide proof that such laws do exist despite being usury in nature.
heres the South Carolina law that was created and the direct notification from the clerk of court notifying a defendent of the increase.

"Effective July 1, 2002, section 20-7-1440(c)
of the South Carolina Law increases the collection costs for child support and alimony from 3% to 5%.
This increase applies to existing orders, as well as orders filed on or after the effective date of the legislation."

This 5% is added into the intrest rates of child support arrearages in the state of South Carolina.
While I realise the notice states an increase in the collection amount,but with it being applied as a form of intrest in collections(%) in which is charged whether an individual is being enforced to pay or not,is a form of intrest being charged to those whom the collection process is not being burdend by refusing to pay.
In otherwords those whom pay on time without fault are having to pay for those whom refuse willfully not to pay.

Collection costs are normal, however they are not applied in the same manner as interest.

 

[stargazer0725]

Plus, hittingrabbit, LdiJ and I both disagree with the WAY you are calculating interest. Interest of 5% is not applied monthly, it is applied yearly, which means that only .41% interest is applied to the BASE DEBT on any given month.

Her term "usury" references the exhorbitantly high rate of interest YOU were calculating - which would have worked out to more than double an NCP's child support debt in a year at a total of 108% per annum by charging 9% per MONTH. 9% per month IS illegal.

 

[hittingrabbit]

I agree that 9% is illegal and must be calculated per annual rate.
The primary concern I had was that the fact an arrearage had occurred in a time period of 12 months of no payment accumulated 5704.55 in arrearages with intrest for an amount of actual arrearage of $1900.00 no matter how they figured it the bottom line of $5704.55 is far to much.
But also please note that the state increase of 5% is seperate and is in addition to the 9% intrest rate provided to the complainiant for non payment of child support arrearages,so with the totals there exists 12% annual rate,it's no wonder many cannot meet the demands.
Also please note that the increase of 2% now totalling a 5% collection rate is added annualy to any previouse arrearages that may have existed,even if there was an agreement between an obliger,the complainiant and the CSE agency.
Even though however according to the last contact with the CSE agency they stated an intrest amount was accumulating an additional $104.00 per month.