SSA - POMS: GN 02406.410 - Department of the Treasury, Bureau of the Fiscal Service (Fiscal Service), Check Claims Branch (CCB) Claims Package Processing

A. Background

The Department of the Treasury (Treasury) generates a claims package when SSA inputs a permanent stop on a missing check (e.g.., A-stop, B-stop, C-stop, F-stop, and G-stop). A claims package consists of the FMS-3858 (Claims Document), FMS-1133 (Claim Against the United States For the Proceeds of a Government Check), and an image of the check. The claims package is available on the Treasury Check Information System (TCIS).

NOTE: This section pertains to nonreceipts made within a 12-month time period from the issue date. For instructions on allegations of nonreceipt not timely filed, see GN 02401.903.

B. Treasury action after inputting a permanent stop for a missing check prior to negotiation

This section describes Treasury’s actions when you input a permanent stop for a missing check prior to negotiation.

IF	THEN
A-stop input for a nonrecurring SSI (check type 2, 4 or 9--Title XVI only)…	Treasury determines if someone cashed the missing check and reports to SSA the status of the check using a disposition code. Treasury will not issue a replacement check. If appropriate, SSA will replace the missing check via automated one-time payment (AOTP).
A-stop input for a Mass Loss (Title II or Title XVI)…	Treasury treats this as a B-Stop and issues a replacement check before knowing the status of the original check.
B-stop…	Treasury issues a courtesy disbursement check before knowing the status of the original check.
C-stop…	Treasury will first determine the status of the original check. If the original check is still outstanding, Treasury will “cancel the issue” and advise the Regional Finance Center (RFC) to issue a replacement check (GN 02406.150). Treasury will take no further action unless someone later negotiates the original check.
F-stop	Treasury determines the status of the original check. If the original check is still outstanding, Treasury cancels the outstanding check and returns a credit to SSA. NOTE: For more information on F-stop see GN 02408.020.
G-stop	Treasury determines the status of the original check. If the original check is still outstanding, Treasury will return the credit to SSA and reissue the check.

NOTE: If a claimant reports a missing check and is confused about whether the check was endorsed or not, use a C-stop. This will obtain the status, and if appropriate, Treasury will replace the check.

C. Treasury action when someone negotiates a missing check after a permanent stop input

When you input a permanent stop code of A, C, F, or G for a missing check, and then someone cashes the check in question, Treasury takes the following action regarding the claims package.

IF	THEN
A-stop	Treasury sends a status code and a claims package to SSA via TCIS.
C-stop	Treasury forwards the action to the Check Claims Branch (CCB). CCB requests the check image and prepares a claims package (FMS-3858, FMS-1133, check image). CCB sends the claims package directly to the claimant for review and completion if the claimant does not recognize the signature as his or her own.
F-stop (Title II)	Treasury sends a claims package to the Processing Center (PC) via TCIS and notifies SSA. NOTE: Under Title XVI, an F-stop automatically occurs on the replacement check when the initial nonreceipt input is a B-stop.
G-stop (check lost, stolen, and negotiated after the claimant or representative payee endorsed the check.)	Treasury sends a claims package to the Processing Center (PC) or Field Office (FO) of jurisdiction via Treasury Check Information System (TCIS).

D. Treasury action when someone negotiates the original check after courtesy disbursement or replacement check issued

If someone cashes both the original and the courtesy disbursement or replacement checks, Treasury sends out claims packages for both checks. For more information on where Treasury sends the claims package, see GN 02406.410 C in this section.

NOTE: For information on Payment Over Cancellations (Treasury credit reversals) see GN 02406.245.

E. Treasury actions when the claimant denies endorsing a check

If a claimant does not recognize his or her signature after reviewing a check image, the claimant may complete the FMS-1133. The claimant must return the completed FMS-1133 to the FO or PC for A-stop, F-stop, B-stop, and G-stop situations. The FO or PC photocopies the FMS-1133 and forwards the original to Treasury. In C-stop situations, the claimant must return the completed FMS-1133 directly to Treasury. When Treasury receives the completed FMS-1133, Treasury reviews the completed FMS-1133 and check image. Treasury takes the following actions:

IF	THEN
the action originated as a C-stop	Treasury will refer the case to the United States Secret Service (USSS) for investigation in certain circumstances. Example: When the claimant believes (or has knowledge) that a member of his or her family forged and cashed the check in question, Treasury refers the case to USSS. Treasury and does not make a forgery determination until after the USSS completes their investigation.
Treasury determines forgery is involved	Treasury sends a Claims Disposition Notice (CDN) to SSA, reclaims the money from the presenting bank, and sends a replacement check (or settlement check) to the claimant as appropriate. NOTE: A settlement check has a different check number and symbol from the original check. You can find information regarding the settlement check on TCIS.
Treasury determines that forgery is not involved	Treasury sends a CDN to SSA.

IF

THEN

the action originated as a C-stop

Treasury will refer the case to the United States Secret Service (USSS) for investigation in certain circumstances.

Example: When the claimant believes (or has knowledge) that a member of his or her family forged and cashed the check in question, Treasury refers the case to USSS. Treasury and does not make a forgery determination until after the USSS completes their investigation.

Treasury determines forgery is involved

Treasury sends a Claims Disposition Notice (CDN) to SSA, reclaims the money from the presenting bank, and sends a replacement check (or settlement check) to the claimant as appropriate.

NOTE: A settlement check has a different check number and symbol from the original check. You can find information regarding the settlement check on TCIS.

Treasury determines that forgery is not involved

Treasury sends a CDN to SSA.

F. Treasury action when claimant denies receiving a claims package

The claims package can contain either the same address found on the check in question or the address used on SSA's nonreceipt input. If claimant denies receiving the claims package, follow instructions in GN 02406.220 concerning failure to receive form FMS-1133 claims package.

G. CCB actions for undeliverable FMS-1133

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.

For a Title XVI check, CCB returns undeliverable FMS-1133's to the FO of jurisdiction. The FO will correct the address on the FMS-3858.

H. References

GN 02406.001 Glossary of Nonreceipt Terms

GN 02406.150 When to Request Payment after Status C-Stop - Normal and Dire Need Situations

GN 02406.245 Payment over Cancellation (POC)/Credit Reversal

GN 02406.125 Transmitting Reports of Nonreceipt, Loss, Theft, or Destruction--Title II and Title XVI-- Recurring Checks and PMA Checks--Normal and Dire Need Situations.

GN 02406.425 Treasury Case Action Codes of Claims Disposition Notices (CDN)

Social Security

Program Operations Manual System (POMS)

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