Are bank's in Colorado required to participate in the state's financial data match program that helps to identify child support obligors? We received a phone call from the company that works as the agency on behalf of the State of Colorado requesting we file this agreement? What do other Colorado banks do in this situation? Share or not share?

There is some question among compliance officers and others as to whether banks are required by regulation to provide data matching information. Some say definitely yes, while others say there are reasonable arguments to say no. This has apparently been an ongoing conflict between banks and the State. Most that I know of have agreed to provide the information (although not all). So, I would recommend that if you do not want to participate, you check with your bank’s legal council to give yourselves comfort that you are acting within your rights and the law.

The most helpful citation I found was Colorado Revised Statutes 26-13-128. You should read through it.

Finally, you may also want to consider the impact of your privacy policies on providing such information. Be sure your policy provides for disclosure of information when permitted by law.

Someone at State provided the following information to one of our CCP members... I’ve cut and pasted the pertinent info here. This is the same cite provided by Clyde.

The department responsible for the Child Support Enforcement Program is under the State's Department of Human Services at this web site: http://www.cdhs.state.co.us/ ... click to find out about Child Support...

All financial institutions are encouraged to read the statute cite shown here.

Section 26-13-128, Colorado Revised Statutes
Agreements with Financial Institutions - Data Match System - Limited
Liability.

A few key points:
This provision states in part that ... (1)... the executive director may request and shall receive from such financial institutions... the information and action described in this section... (2) ... to develop and operate... in coordination with such financial institutions... a data match system ... in which each financial institution is required to provide at least semi annually... the state department shall enter into an agreement with each financial institution ... the child enforcement agency shall make a reasonable effort to accommodate those financial institutions upon which the requirements of this section would pose a hardship... and so on.

There didn't appear to be anything in the Colorado financial institutions code that refers to this issue.