Whenever the cost involved is the reason the individual refuses to comply with the
request for a second refund (e.g., an individual, otherwise willing to remit the amount
in cash, purchase a second money order or write a second check, objects to the cost
of stopping payment on the original check or money order), 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 remitter questions paying the cost of a stop payment, require him/her to contact
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., according to the appropriate trust fund.
IMPORTANT: If there is no overpayment on the record or a master record does not exist, ask the
remitter to obtain a stop payment order and request a copy as proof of payment. Once
a copy of the stop payment order is received, issue a third party draft (TPD) to the
remitter 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.