SupportKids on Life Support

06. May, 2009 Comments

[Editors Note: Our comments section has been very active, with people affected by this issue using our comments as a way to support each other. We've shut off the comments, as this isn't the purpose of our comments section. If somebody is going to setup a discussion group (like www.ning.com for example), please email the editor and we will update this blog post and point people to your support forum.]

Austin-based SupportKids is laying off staff members, and is rumored to be shutting down operations. We called the company for a statement, and the main phone number goes directly to CFO Dianne Erlewine’s voicemail box. That’s probably not a good sign, but if you have any further information please leave it in the comments.

SupportKids is an awesome idea, and the company has a fantastic mission. Company founder Casey Hoffman was the recipient of Ernst & Young’s Entrepreneur of the Year award several years ago. Recent news reports say that the company has helped collect over $300M in owed child support.

The biggest complaint about the company was the way in which they priced their services. At first glance it appears they charge 34% of all back child support collected, but some consumers complained because they start charging 34% of all your child support immediately, whether they ever collect on back child support or not. This resulted in a class action lawsuit, plus complaints on a few of the “consumer ripoff” websites.

Hoovers reports that the company has 175 employees with revenues of $7.5M.

Posted by Austin Startup http://www.austinstartup.com
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  • Tj
    I just got off the phone with this new agency. When I asked about how to cancel all services because I did not want to deal with their company I qas rudely told that I signed a contract with SupportKids and it would not be cancelled unless I met their requirements. When I asked what the requirements were, David coulnd't give me that information but just referred me to the "Informational packet". I am not happy with this change and I will be doing lots of research on pulling back your debt from a collection agency. I know companies can do this, so why can't we as individuals do this as well.
  • Evelynn
    I can't believe what I'm reading. I knew something wasn't right. I just settled on my case the last week of April and my ex had a check in their office within 3 business days. Here's almost the end of May and I've called and left messages and sent emails ~ No responce from no one. On their web site states that they sent out a check for the amount $$$ and the check # on May 12th but I have not receive it.
  • Seveen
    Supportkids was the only way I was able to receive ANY child support money. The state of Georgia "lost" my paperwork numerous times and I took paperwork to the state of Florida in January and haven't heard a word from them.

    Yes, it seems as if Supportkids takes a lot of money but I just called a private attorney and he wanted a $2,500 retainer and $200 per hour.

    The demise of Supportkids is also related to the fact that some states will no longer let 3rd parties collect child support.
  • Chris
    I talked to someone at the law firm and was told that their fees are lower thank support kids and we don't have to pay another fee for services. Support kids was supposed to send out letters to all of us but I guess no one got that letter.

    I just googled Richard Boudreau and got sick in my stomach. I am owed approx $160,000 in child support and was getting money every week by direct deposit. Now I am nervous what is going to happen because as this so called transfer takes place what is going on with the child support that is being deducted from the non custodial parents paycheck. Where is that money going?

    I will keep checking back and if I come across any new info I will post it.

    I hope that we all aren't about to get taken for a ride.
  • Norma
    Bettyann, I have been receiving regular monthly payments from Supportkids for almost 6 years!!! When I heard the recording last week I died inside.

    Now I am struggling whether I want to pursue my child support through my county or put it in the hands of these bill collectors. There is way too much negative information on Richard Boudreau and if they harrass my ex, he can easily get another cell phone number and then he will never be contacted. So I am torn like everyone else but I believe the right thing to do is go to my county's child support division since I know the address of my ex husband. Unfortunately I don't know where his place of employment is but if I go the legal route, I pray he will compromise and do the right thing.

    Good luck to all of you and I will continue checking this website and if I have any updates I will definitely post.
  • Robin
    Now, I have 115$ worth over overdraft fees in my account and the check I sent for my car payment has bounced. I'm sure there will be a fee from that. And now my car payment will be late. I would have rather have gotten nothing from my step sons dead beat mother then go backwards $150 for nothing. So now they owe us for the check that didn't clear plus atleast $115 and whatever my car company charges for a returned check.
  • Bettyann
    I also just learned about this "law firm". I am very disturbed by everything I saw when I Googled it. It seems as though our hands are tied. If and when I receive the into packet, I will take it to an attorney to determine if what they will ask is on the up and up.

    I have received regular payments via Supportkids for almost 2 years, and I am extremely upset about this change.
  • Robin
    My husbands ex wife has never paid a cent until now. We were so happy when we finally got SOMETHING last week. And then the check bounces. I'm so angry. I wonder if this collections agency will send us a check to replace it with
  • Robin
    My husband received his first check last week. It bounced today. We also got another one a few days later. I'm sure this one will bounce too. I don't have the money to replace it.
  • Norma
    Christeen I was thinking the same thing. I am going to write a letter to the attorney general. I don't know what good that will do but at least it will get their attention regarding these companies.
  • Christeen
    Mine also said the same thing. If anyone finds out what we are suppose to do about this credit agency let me know. Is this in any other news? Should I contact the attorney general about it?
  • jenn
    I to just found out what is going on. I'm freaking out because support kids accepted a payment on may 9 but I have not recieved it. Does that mean they just get to steal it? Also they are still taking money from the non custodial parent's paycheck, where is that going? Do they have free reign to just steal from me is any legal agency going to stop them? if this was a bank robbery it would get tons of coverage but this is much worse and I'm sure lots more money involved. Is anyone out there going to step In????? My ex owes over 90,000 dollars its no joke.
  • Norma
    I called Support Kids hotline to find out whether my child support check has been received for the month of May and to my shock I heard that my case is being handled by Richard J. Boudreau & Associates LLC. I googled the company and I knew it was a collection agency meaning Support Kids is facing an eminant collapse.
    Deeanna I know how you feel and I feel the same as you. If I go to my county's jurisdiction, especially when my ex lives in California and I live in Lake County Indiana, I have no other choice but to go with this collection agency since the County's are so back logged with child support cases. It is ridiculous what we have to endure and in the end our children suffer.
    Ladies, I will follow you and support you with whatever you decide to do.
    I will be checking this website frequently for updates and information.
  • Jamie
    I just found this posting, and have emailed this individual, maybe if we all get together on this, we might have some recourse.

    http://www.complaints.com/SupportKids-208424/Sc...
  • Jennifer
    You know, I just got that same bull**it email also, and it looks like we are going to be required to "SIGN AND RETURN" specific documents.... maybe if we dont do that, we arent giving them legal permission to pursure our case..... I have sent emails to every news station in Austin, trying to get some press on this issue. Its shameful what this company has done to us.

    To Deeanna- I understand what you are saying, I am owed alot as well..... maybe someone on here knows about some reputable companys that do what Supportkids, INC claimed to do? I dont know, but will be doing some research to see what I can find out about these other companies. I will post anything I find.
  • gail Flecther
    My case was also sent to Richard J Boudreau, my concern is where and to whom will our support checks go to. I just called the information line and was referred.I feel really stressed out not knowing where to turn for information. HELP
  • Deeanna
    I just found out about Supportkids about 10 minutes ago and I was in shock. My case has been going for about 6 years and I have only received 6 checks and they took almost half my money on 4 of the checks and all my money on the first 2. I was confused but when asked them about it I was told this was there fee for collecting the support. I always felt that they were never really doing there job and was messing around, but I never knew things were so bad. I am probably going to go with this new company because my ex owes over $100,000 and my state or no one else is helping me collect. If anyone has any better advice or ideas please please share them with me, I am willing to try anything and if anyone has any information about the class action lawsuit, please share that also.
    Thank You
    Deeanna
  • Teri
    How do we become a part of this class action law suit. I have been ripped off by Support Kids for over 4 years at 34 percent. I was also transferred to this Richard J Boudreau that has so many complaints against him I feel that I have been dumped by a wolf into another wolf den. If anyone knows how to get on board in the class action suit.

    Please share the info.

    thanks,

    Teri
  • Sara Stewart
    I am also a SupportKids Client. When I checked into my case yesterday, they had posted that Richard J. Boudreau & Associates, LLC. When I googled them, I got the feeling that they are not reputable and wonder if I have a choice here? I received an auto-response from the "law firm" that said I will be receiving a packet of information to sign and return. They are even sending a postage paid envelope for my convenience! I will not be signing this information.

    I am anxious to hear more about what is going on.
  • Jennifer
    Looks like Support Kids is canceling their services and sending people to this "law firm" Richard J. Boudreau & Associates, LLC
    5 Industrial Way
    Salem, NH 03079
    When you log onto your account, your information on case activity is no longer there and no one is answering their line. This so called law firm is a well known nasty collection agency. Is this legal??? We signed contracts with Supportkids, not some shady breaking the rules collection agency...can we still be held to these contracts???? HELP!
  • I was just informed of this information today. I started my blog 2 years ago to try and warn people about this company. I cant tell you how happy I am that someone finally listened. They collected over $25,000 dollars in fees from me alone since 2002 . No matter how many times I requested to terminate my contract, they always refused. Its about time something was done!!!!
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