Multiple variables cause SSA to deny requests to establish, change, or cancel direct deposit. This chapter identifies some of the reasons why a direct deposit request may be unacceptable and provides guidance on delivering a proper response.

Deny direct deposit requests not meeting requirements outlined throughout POMS chapter GN 02402.025. Reasons for denying direct deposit enrollment may include, but are not limited to, the following:

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  Unable to identify the requesting beneficiary’s, recipient’s, or representative payee’s identity (See GN 02402.025B.1 through GN 02402.025B.3)

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  Unacceptable financial institution (See GN 02402.030A.1)

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  Unacceptable depository account (See GN 02402.030B.1)

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  Unacceptable depository account title (See GN 02402.050)

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  The beneficiary, recipient, or representative payee calls to make a change to the direct deposit and there is a Direct Deposit Fraud block on his or her record (See GN 02402.023)

FO or N8NN technicians denying direct deposit requests may provide the requesting beneficiary, recipient, or representative payee either an oral or written explanation of denial. This response may highlight the specific requirements not met by the beneficiary, recipient, or the representative payee.

NOTE: It is not necessary to retain any record of the denial.

Try to resolve any discrepancies that appear on the SF-1199A by phone contact. Return the SF-1199A to the FI only if:

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  The form was misdirected to SSA (e.g., the Veterans Administration is paying benefits),

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  The requirements of this chapter are not met, or

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  The form is incomplete or incorrect and phone contact is not possible.

If the account title does not meet the requirements in GN 02402.050, explain the reason for denial to the beneficiary, recipient, or representative payee orally or in writing. Return the form under cover of an SSA-L1199.

NOTE: It is not necessary to store these returned forms.

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  GN 02402.023 Direct Deposit Fraud Prevention Policy

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  GN 02402.025 Direct Deposit Post Entitlement Interview

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  GN 02402.030 Acceptable Types of Financial Institutions and Accounts

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  GN 02402.050 Account Titles