Okla. Admin. Code § 340:25-5-140.1

Current through Vol. 42, No. 4, November 1, 2024

Section 340:25-5-140.1 - Interest

(a)Legal authority. Oklahoma Human Services Child Support Services (CSS) collects and enforces interest on past-due Oklahoma court-ordered child support payments, per Section 114 of Title 43 of the Oklahoma Statutes (43 O.S. § 114).

(b)Support for a prior period. CSS collects interest on support for a prior period, per Oklahoma Administrative Code (OAC) 340:25-5-179.1, and is calculated at a rate, per 43 O.S. § 114.

(c)Accrual date.

(1) Interest accrues on any unpaid portion of the monthly current child support obligation on the first day of the month following the:

(A) due date specified in the court order; or

(B) entry date of the child support order when a support order does not specify a due date.

(2) Interest accrues on a lump sum judgment for support for a prior period, accrued child care costs, or accrued fixed medical, from the first day of the month after the judgment is entered, per 43 O.S. § 114.

(d)Grace period and accrual. CSS has a grace period when interest is not charged. Interest begins to accrue from the first day of the month following the date the arrears are in excess of one month's current support.

(e)Interest on cash medical support. CSS does not calculate or collect interest on unpaid cash medical support.

(f)Servicemember relief.

(1) Upon a servicemember's written request, an interest rate cap of six percent applies to child support arrearages of members of the military service incurred prior to the start of military service, per Section 3937 of Title 50 of the United States Code.

(2) The servicemember must provide a written request for reduced interest and a copy of the military orders calling the servicemember to service and any orders further extending military service to CSS no later than 180-calendar days after the date of the servicemember's termination or release from military service.

(3) Upon receipt of these documents, CSS applies the six percent interest rate to child support arrearages existing as of the date when the servicemember is called to military service and throughout the active military service.

(4) CSS may initiate a court action to challenge the claim that the servicemember's military duty materially affected his ability to pay an interest rate over six percent.

(g)Interest rate.

(1) CSS calculates simple interest, per 43 O.S. § 114.

(2) For orders established in other states, the law of the state entering the order determines the amount and rate of interest due until a determination of controlling order is made.

(3) For orders established in Oklahoma, Oklahoma law determines the amount and rate of interest due.

(4) When there are multiple child support orders and Oklahoma is determining the controlling order, CSS determines the rate of interest charged, per 43 O.S. § 601-604.

(h)Order silent as to interest. When an order that settles or determines a past-due child support amount is silent as to interest, the party with the right to collect has not waived the interest.

(i)Enforcement. Accrued interest is considered child support. Interest is included in enforcement remedies.

(j)Incoming interstate cases. In the absence of an Oklahoma order, CSS collects interest on incoming interstate cases when an initiating state calculates the interest owed and requests that CSS collect it.

(k)Outgoing interstate cases. Before requesting a responding state to enforce a child support order(s) entered in a state other than the responding state, CSS calculates the arrears including the accrued interest claimed.

(l)Application of payments to interest. CSS applies payments to interest, per OAC 340:25-5-351.

(m)Waiver of interest. CSS acknowledges the rights of the custodial person (CP) and noncustodial parent (NCP) to mutually waive, with approval of the court, all or a portion of the interest due to the CP.

(1) CSS may negotiate the right to collect all or part of the interest owed to Oklahoma.

(2) Settlements of interest must be memorialized in a court order and may include:

(A) an NCP's lump sum partial payment or a series of payments; or

(B) an agreement for the NCP to pay:

(i) a specified number of current child support payments in the future; or

(ii) non-cash support.

(n)Reopening closed cases. CSS does not reopen closed child support cases at the request of a customer for the purpose of collecting interest.

(o)Interest on spousal support. CSS does not calculate or collect interest on spousal support.

Okla. Admin. Code § 340:25-5-140.1

Added at 17 Ok Reg 2426, eff 7-1-00 ; Amended at 18 Ok Reg 1226, eff 7-1-01 ; Amended at 19 Ok Reg 1746, eff 7-1-02 ; Amended at 20 Ok Reg 1240, eff 7-1-03 ; Amended at 21 Ok Reg 1344, eff 7-1-04 ; Amended at 22 Ok Reg 1221, eff 7-1-05 ; Amended at 23 Ok Reg 1842, eff 7-1-06 ; Amended at 28 Ok Reg 812, eff 7-1-11 ; Amended at 29 Ok Reg 765, eff 7-1-12 ; Amended at 30 Ok Reg 648, eff 7-1-13

Amended by Oklahoma Register, Volume 36, Issue 24, September 3, 2019, eff. 9/16/2019

Amended by Oklahoma Register, Volume 38, Issue 24, September 1, 2021, eff. 9/15/2021