Whenever a field office (FO) becomes aware that a money order company has declared
bankruptcy, or taken some other action which renders the money orders worthless, the
FO takes the following actions:
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Immediately notifies the regional office, which will then send the information about
the bankruptcy to Finance and Management (Accounting) in Baltimore,
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Transmit the material to Accounting via email, if possible, using the OPRP Inquiry
Site,
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Accounting will issue an appropriate NEWS item; and
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Stop accepting money orders from that company.
In those cases where the Mid-Atlantic Payment Service Center (MATPSC) learns about
the problem with the money order company after a money order has been accepted, MATPSC
will notify Accounting through the OPRP inquiry website shown above, and forward the
returned remittance and a photocopy of the Field Office Remittance Transmittal (FORT)
to the FO.
The FO takes the following actions:
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Notify the remitter that the money order was not acceptable, and request a replacement
remittance.
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If the remitter submits a replacement remittance, issue a new receipt, and forward
the payment to the MATPSC via a new FORT.
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Delete the original receipt in DMS, see MS(sens)01104.011, after cross-referencing it to the remittance ID field of the new receipt.
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Provide the remitter with as much information as available, so the remitter may file
a claim against the money order company.
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If the remittance is for an installment, extend the remitter's installment agreement
time-frame an additional month. See MS(sens)1106.014.
The Social Security Administration (SSA) may not give credit for the returned remittance
if it was purchased by the debtor; however, if SSA purchased the money order to process
a cash remittance, credit the debtor's account and file a claim against the company
to recover the purchase price of the money order.