San Diego, CA – A recent court ruling determined that certain fees attached to child support payments are now illegal and members of the class will be eligible for compensation [1].
Ruling allows support recipients to receive compensation for illegal fees
A federal court in California ruled on December 8, 2025, that a 50-cent fee charged to child support recipients for using an automated customer support phone line violates the state’s Unfair Competition Law (UCL). The decision granted summary judgment in favor of a certified class of recipients, denying the defendants’ cross-motion.
Child support payments in California are disbursed through the Department of Child Support Services, with recipients offered three options: check, direct deposit, or a prepaid Way2Go Mastercard debit card. The debit card program is managed under an exclusive contract, where one defendant handles disbursement and the other issues the cards and oversees compliance.
Cardholders access customer support via an online portal, mobile app, or phone line. Phone inquiries first enter an Interactive Voice Response (IVR) system, an automated menu. Users receive three free IVR uses per month; additional accesses incur a 50-cent fee, deducted directly from the card balance or future child support deposits if funds are insufficient. Even calls routed to live agents—who handle tasks unavailable online or via app—require passing through the IVR, triggering the fee.
The court found this practice unfair under the UCL. Although the per-call fee appears minor, it deducts from funds intended solely for child support, imposing a substantial cumulative burden on low-income recipients raising children. Defendants are already compensated substantially under their state contract—which requires providing both live and 24/7 IVR support—and the automated system saves them operational costs compared to live agents only.
From July 2020 to December 2024, at least $7,619,059 in such fees were collected. The ruling mandates restitution of this full amount to the class, highlighting how the charges unfairly shift customer service expenses onto vulnerable beneficiaries.
The decision underscores protections for public benefit recipients, emphasizing that business practices cannot erode designated support funds, even through small incremental fees.
How can family attorneys in California help with ensuring child support payments are adequate?
Family attorneys in California play a vital role in ensuring child support payments meet children’s needs under the state’s uniform guideline, which uses a statutory formula based on parents’ incomes, parenting time percentages, and other factors. As of recent updates effective in 2024-2026, the guidelines include a low-middle income bracket adjustment, raised income floors, and more flexible allocation of expenses, helping attorneys advocate for accurate and equitable orders. Attorneys begin by gathering comprehensive financial evidence, including pay stubs, tax returns, bonuses, self-employment records, and deductions. They run precise calculations using certified guideline software to verify proposed amounts align with the law, identifying errors like unreported income or improper time-share estimates that could undervalue support. For add-ons beyond basic support, attorneys seek mandatory or discretionary extras. Mandatory add-ons cover child care for employment or education and uninsured medical costs; recent changes allow courts to apportion these proportionally by income rather than automatically 50/50, enabling arguments for fairness when one parent earns significantly more. Discretionary add-ons may include extracurriculars, education, or special needs, with attorneys presenting evidence of the child’s best interests. When circumstances change—such as job loss, income increase, remarriage, or shifting custody—attorneys assist in modifications. They file a Request for Order, prove a significant change warranting adjustment (typically 20% or $50 difference), and navigate hearings or negotiations. Periodic reviews may occur automatically in some cases starting 2026. Enforcement is another key area: if payments lag, attorneys collaborate with the Department of Child Support Services for wage garnishment, license suspension, or intercepts, or pursue contempt proceedings for willful nonpayment. Overall, experienced family attorneys protect recipients by maximizing guideline support, incorporating necessary add-ons, securing modifications for evolving needs, and rigorously enforcing orders—ensuring funds adequately cover housing, education, health, and daily child expenses without unnecessary conflict.
Family attorneys are available in the San Diego area
Smith Family Law is available to help local clients with issues such as divorces, child custody, alimony, domestic violence, and settlements. Their attorneys can provide more information about any of these issues.
Firm contact info:
225 Broadway, Suite 2220, San Diego, CA 92101
619-431-3131
https://www.smithfamilylaw.com/
Sources:
https://www.courthousenews.com/california-child-support-recipients-win-cla