The beneficiary, recipient or representative payee may request to cancel a direct deposit authorization at any time in person, by phone to the FO or processing center (PC), or by calling the National 800 Number.

However, inform the beneficiary, recipient or representative payee that the Department of the Treasury (Treasury) requires existing entitled beneficiaries, recipients and representative payees to receive some form of an electronic payment.

Follow the Direct Deposit Information for All Types of Interviews in GN 02402.005E. and GN 02402.005F.

When the beneficiary, recipient or representative payee requests cancellation:

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  Obtain an updated payment address;

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  Remove the direct deposit information;

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  Inform the beneficiary, recipient or representative payee to keep the account open with the FI until the first paper check arrives in the mail at their payment address;

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  Inform the beneficiary, recipient or representative payee that Treasury will contact them about continuing to receive payments via paper check and how to apply for an exemption; and

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  Inform the beneficiary, recipient or representative payee that Treasury will make an exemption determination and inform them of their decision.

When an FI accepts the first direct deposit payment, it establishes an agreement to honor the direct deposit request and is responsible and liable for the payments on a continuous basis. Although it is rare, the FI may cancel this agreement by providing the beneficiary, recipient or representative payee with written notice.

The payment will continue to go to the FI until the beneficiary, recipient or representative payee notifies us to cancel direct deposit or post new direct deposit information to the record.

NOTE: The FI returns payments to us when they no longer honor the agreement.

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  GN 02402.001 Direct Deposit as a Form of Electronic Payment

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  GN 02402.005 Direct Deposit Information for All Types of Interviews

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  GN 02402.025 Direct Deposit Post Entitlement Interview