An individual may refuse to comply with the request for a second remittance because
they object to the cost of stopping payment on the original check or money order.
For example, an individual otherwise willing to remit the amount in cash, purchase
a second money order, or write a second check, objects to the additional cost of stopping
payment on the original check or money order. When this happens, SSA should consider
adjustment of the second refund amount by the amount of additional cost to the individual
as a title II or title XVI 'write off.'
If the individual questions paying the cost of a stop payment, ask him or her to verify
the cost with the issuing bank as there may be no charge for the stop payment. If
the cost of the stop payment order is equal to or exceeds the amount of the first
check or money order, do not request a replacement from the individual. Adjust the
overpayment balance using the instructions in GN 02403.160B and GN 02403.160C in this section, according to the appropriate trust fund.
IMPORTANT:If there is no overpayment on the record or a master beneficiary record does not exist,
ask the individual to obtain a stop payment order and request a copy as proof of payment.
Once you receive a copy of the stop payment order, issue a third party draft (TPD)
to the individual for the cost of the stop payment. Use the office CAN, SOC 252K, and input the following comment: “L C Bank Fee for Lost Pay.”
The office issuing the draft is required to maintain all of the supporting documentation
associated with the case. In addition, attach copies of the supporting documentation
to the copy of the TPD issued. For Operating Procedures for Third Party Drafts, see
AIMS FMM
03.05.