When nonreceipt is transmitted as a B-stop, “payment before status,” DT issues a courtesy
disbursement check to replace the missing original. A courtesy disbursement check
is issued before the status of the original check is known and bears a different check
number from the original check. The bottom of the check will also have a statement
“Replaces check #12345678 dated MM/DD/YY.”
An A-stop for mass loss works the same way as a B-stop – payment before status, because
SSA’s system changes it to a B before sending it to DT. Therefore, if the original
is cashed after a courtesy disbursement check is issued/cashed, a DCN will occur and
DT will send out claims packages for both checks. DCNs in mass loss situations should
be processed as any other DCN situation. See instructions below. If a C-stop (“payment
after status”) is input and the original check has not been cashed, DT will issue
a replacement check.
Although the beneficiary/recipient is advised not to cash both the original and courtesy
disbursement, or replacement check, the original may be subsequently cashed and is
a potential overpayment situation. This section explains what occurs when DT determines
that the original and a courtesy disbursement or replacement check are cashed for
the same benefit month.
Debit and credit information is posted to the PHUS, SSR, and the Q query control record
when the original check is cashed, and reflects each credit given or overpayment being
charged to SSA. See SM 00545.295H.4. for debit and credit codes for title II and SM
01315.200 for title XVI.
A credit will usually be posted to PHUS, SSR, and ARS when DT has refunded money in
stop payment cases.
SSA treats the courtesy disbursement or replacement check as an overpayment and initiates
recovery action, and
SSA sends the claimant a notice of overpayment that explains the 60-day appeal period
and the right to request reconsideration by SSA, waiver, personal conference, or a
different rate of adjustment. It also explains that overpayment recovery will begin
in 30 days unless a request for reconsideration is received.
IMPORTANT: Double check negotiations should NOT be waived as they indicate an intention to
commit fraud by falsely stating that the check was not received. Similarly, the $500
waiver tolerance does not apply because the beneficiary or claimant is not “without