TN 14 (04-00)

GN 02406.410 Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service), Check Claims Branch (CCB) Processing -- Checks Processing

A. Policy

When the transmission containing SSA claims of nonreceipt is received from the Regional Financial Center (RFC), it is screened against DT's Check Payment and Reconciliation (CP&R) System.

B. Process

The following describes the way in which actions for paper checks are processed at DT.

1. Missing Check Outstanding

  1. When an A-stop is input for a nonrecurring SSI check (type 2, 4 or 9--title XVI only), DT determines whether the missing check is cashed or uncashed and reports back to SSA by disposition code. DT will not issue a replacement check. If appropriate, SSA will replace the missing check via AOTP.

  2. When Mass Loss exists and an A-stop (title II or title XVI) is input, it is treated as a B-Stop and DT issues a replacement check before status of the original check is known.

  3. When a B-stop is input, DT issues a courtesy disbursement check before status of the original check is known.

  4. When a C-stop is input, DT first determines the status of the original check. If the original check is outstanding, DT will “cancel the issue” and advise the RFC to issue a replacement check (GN 02406.150). No further action will be taken by DT unless the original check is later negotiated.

  5. When the input is an F-stop, if the missing check has not been negotiated, DT notifies SSA and returns a credit to SSA. If the missing check has been negotiated, DT sends a claims package to SSA.

  6. When a G-stop is input, if the original has not been presented for payment by the time the nonreceipt claim is processed, the credit will be returned to SSA and the check will be reissued. If the original is subsequently presented for payment, SSA will receive a debit (credit reversal) and the beneficiary/recipient will be overpaid.

2. Missing Check Negotiated

  1. If an A-stop is input and the missing check was cashed, DT sends a status code and a claims package to SSA.

  2. If the nonreceipt claim was input as a C-stop and the record shows that the original check has been negotiated, the action is forwarded to the Check Claims Branch (CCB). CCB requests the check copy and prepares a claims package (FMS-3858, FMS-1133, check photocopy) which is sent directly to the payee for review and completion if the claimant does not recognize the signature as his/her own. A settlement check is issued only if forgery is determined.

  3. If the input was an F-stop (not automatic in title II cases) and the missing check is cashed, DT notifies SSA that a claims package is being sent to the PC or DBCA. In title XVI, an F-stop is automatically placed on the replacement check for nonreceipt transactions originating as a B-stop when the original check is subsequently cashed (DT response will indicate whether overpayment exists).

  4. If the check was lost or stolen, and cashed after the payee endorsed the check, a G-stop is input. This will produce a claims package and, although the claimant may report having signed the check before it was lost or stolen, it is a good idea to have the claimant look at the check photocopy so that the FMS-1133 can be completed if he/she was mistaken. DT reports that G-stops are often used when a different stop code should have been input and/or the signature turns out not to be that of the claimant.

If a claimant reports nonreceipt/loss of a check and is confused about whether the check was endorsed or not, a C-stop can be used. This will obtain the status and, if appropriate, DT will replace the check.

3. Original Check Negotiated After Courtesy Disbursement or Replacement Check Is Issued

  1. If the nonreceipt claim was transmitted as a B-stop, the claims package is mailed to the PSC of jurisdiction for title II and the Division of Benefit Certification and Accounting (DBCA) at Central Office for title XVI. DBCA then forwards the package to the FO of jurisdiction.

  2. If both the original and the courtesy disbursement or replacement checks are cashed, DT sends out claims packages for both checks.

  3. If the nonreceipt claim was transmitted as a C-stop, the claims package is mailed directly to the check payee from DT.

  4. When a C-stop is input, the processing time from nonreceipt input to receipt of a replacement check is 3 to 5 weeks in situations described in GN 02406.410B.2., bullet 1.

4. Check Payee Denies Endorsing the Check

  1. After reviewing the check photocopy, if the payee does not recognize the signature as his or her own, he/she must complete the FMS-1133 and send it to the FO/PC. The package is photocopied and then forwarded to DT. EXCEPTION: Completed claims packages in C-stop situations are mailed directly from the claimant to DT.

  2. Upon receipt, DT reviews the completed FMS-1133 and check photocopy. If DT determines that forgery was involved, a CDN goes to SSA, DT reclaims the money from the presenting bank, and a replacement/settlement check, as appropriate, is issued to the claimant. (DT often replaces the missing check and reclaims the money from the presenting bank at the same time.)

  3. If CCB determines that forgery is involved and the action originated as a C-stop, DT issues a settlement check (if still due) and sends a CDN to SSA. DT may refer the case to the United States Secret Service (USSS) for investigation if circumstances warrant. The settlement check is issued with a different check number and symbol from the original check. The settlement check is not recorded on any of SSA's records; however, information regarding the settlement check can be found on CP&R.

  4. If DT determines that forgery was not involved, a CDN goes to SSA.

  5. When the claimant believes or has knowledge that the person who forged and cashed his/her benefit check is a member of the family, DT does not make a forgery determination until after the USSS completes their investigation.

5. Claimant Denies Receiving Claims Package

  1. The claims package can contain either the same address that was on the check in question or the address that was on SSA's nonreceipt input.

  2. Query CP&R to ensure the package was sent to the correct address, or call DT's general number (855-868-0151) and ask for status of the claims package. For B-stops, the PC (title II) sends the package to the claimant; for title XVI, DBCA (title XVI) sends the package to the FO of jurisdiction. In C-stop situations, DT sends the package directly to the claimant.

  3. If the package was mailed out (date shown on CP&R) less than 5 days in the past, ask claimant to call back if the package does not arrive in the next couple of days.

  4. If five or more days (to allow mailing time) have passed since the package was sent, call DT's general number and request assistance in obtaining another package. Be sure to have check information available (number, symbol, date, amount, etc.) before calling.

  5. If package has not been sent out, determine whether there is a problem/when claimant can expect package.

6. Undeliverable FMS-1133s - C-Stops

  1. If CCB sends out a claims package to the payee for a title II check and it is returned to CCB as undeliverable (for address purposes), CCB will send the claims package to the PSC for title II. The PSC will determine the correct address and forward the package to the payee.

  2. For a title XVI check, CCB returns undeliverable FMS-1133's to DBCA to be forwarded to the FO. NOTE: If different than the current address, correct the FMS-3858.

7. Payment Over Cancellation/Credit Reversal

See GN 02406.245.

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GN 02406.410 - Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service), Check Claims Branch (CCB) Processing -- Checks Processing - 04/26/2013
Batch run: 04/26/2013