Effective Dates: 10/08/2024 - Present Previous | Next

TN 22 (10-24)

GN 03970.025 Field Office (FO) and Processing Center (PC) Action on Direct Payment Errors and Possible Fee Violations

A. Introduction to FO and PC actions on direct payment errors and possible fee violations

Direct payment errors occur when we pay a fee in excess of the authorized fee to a representative. For examples and additional information about direct payment errors, or excess fee payments, refer to GN 03920.051.

NOTE: 

Excess fee payments made to an entity are not direct payment errors that can become fee violations, even if they involve suspected misconduct of a point of contact (POC). For instructions on resolving excess fee payments made to an entity, see GN 03950.052. For more information on when a POC may have violated the Rules of Conduct and Standards of Responsibility for Representatives see NOTE 1 in GN 03970.013A.1. 

B. Procedure for FO and PC development of direct payment errors and possible fee violations

Before developing for a possible fee violation resulting from a direct payment error, attempt to recover the excess or otherwise erroneous fee payment by contacting the representative and explaining the error following the instructions in GN 03920.051D. If the representative agrees to and refunds the excess payment, there is no fee violation. If the representative does not agree to refund the excess payment, or fails to make the refund, proceed with the development in this subsection. See also GN 03970.017B.1.

Use the following instructions to process Title II and Title XVI possible fee violations resulting from direct payment errors:

  1. 1. 

    Request copies of all relevant United States Treasury checks (front and back) (GN 02406.140) or proof of direct deposits (GN 02406.007) issued to the representative. Authorized users in each FO and PC can retrieve this data online from the Treasury Check Information System (TCIS), if payment is less than two years old.

  2. 2. 

    Use the language and instructions in the following subsection, GN 03970.025C to prepare and send a notice only to the representative requesting repayment of the excess fee.

    NOTE: 

    Use language that is neutral in tone and not presented in a confrontational manner. Generally, representatives follow our rules. Therefore, we must be positive in the determination of a possible violation and its presentation. Refer questions to the Office of the General Counsel (OGC) using the contact information in GN 03970.070.

C. Procedure for FO and PC notice preparation and control

Using Document Processing System (DPS) or Manage Text (MText/AURORA), prepare a notice using the following language to notify the representative of the possible fee violation. Be sure to control for a reply under existing office procedures. Include the correct citation for Title II (20 CFR 404.1740(c)), or Title XVI (20 CFR 416.1540(c)), or both, depending on the claim(s) involved. Following are sample notices you can adjust to fit your situation as explained earlier in this section as well as in GN 03920.051:

1. Sample notice for duplicate payment

Date:

Dear _____________:

You were authorized a fee for your representational services to [claimant's name] in the amount of $8,000. Through error, we made a duplicate payment to you, and you received $8,000 [subtract any user fee if applicable] in excess of the fee authorized to you.

As a result, you owe the Social Security Administration $8,000 [subtract any user fee if applicable]. Please refund this amount within 30 days from the date of this notice. Make your refund payable to the “Social Security Administration” and include the claimant’s full name and full Social Security Number (SSN) on your refund. Mail the refund to: [Insert the FO’s or PC’s address].

If you fail to comply in a timely manner, we may refer the matter to the Office of the General Counsel as a potential violation of our fee collection rules at [20 CFR 404.1740(c) and/or 20 CFR 416.1540(c)], which may result in proceedings to suspend or disqualify you from practicing before SSA under 20 CFR 404.1745 and 20 CFR 416.1545.

Social Security Administration

 

Enclosures:

Copies of the United States Treasury checks issued to the Representative

Self-addressed, Unfranked return envelope

 

2. Sample notice for excess payment

Date:

Dear _____________:

You were authorized a fee for your representational services to [claimant's name] in the amount of $600. Through error, we paid you $850 [less any user fee as applicable], which is $250 in excess of the fee authorized to you.

As a result, you owe the Social Security Administration $250 [less any user fee as applicable]. Please refund this amount within 30 days from the date of this notice. Make your refund payable to the “Social Security Administration” and include the claimant’s full name and full Social Security Number (SSN) on your refund. Mail the refund to: [Insert the FO’s or PC’s address].

If you fail to comply in a timely manner, we may refer the matter to the Office of the General Counsel as a potential violation of our fee collection rules at [20 CFR. 416.1540(c) and/or 20 CFR 404.1740(c)], which may result in proceedings to suspend or disqualify you from practicing before SSA, under 20 CFR 404.1745 and 20 CFR 416.1545.

Social Security Administration

 

Enclosures:

Copies of the United States Treasury checks issued to the Representative,

Unfranked return envelope

 

3. Sample notice for unauthorized fee

Date:

Dear _____________:

You were not authorized a fee for your representational services to [claimant's name]. Through error, we made a payment to you of $8,000 [subtract any user fee if applicable]. This is an unauthorized fee.

As a result, you owe the Social Security Administration $8,000 [subtract any user fee if applicable]. Please refund this amount within 30 days from the date of this notice. Make your refund payable to the “Social Security Administration” and include the claimant’s full name and full Social Security Number (SSN) on your refund. Mail the refund to: [Insert the FO’s or PC’s address].

If you fail to comply in a timely manner, we may refer the matter to the Office of the General Counsel as a potential violation of our fee collection rules at [20 CFR 404.1740(c) and/or 20 CFR 416.1540(c)] which may result in proceedings to suspend or disqualify you from practicing before SSA, under 20 CFR 404.1745 and 20 CFR 416.1545.

Social Security Administration

Enclosures:

Copies of the United States Treasury checks issued to the Representative, if appropriate

Unfranked return envelope

 

D. Procedure for processing representative’s response to a notice

1. Representative agrees and complies

Take the following actions if the representative complies with the notice:

  1. a. 

    Document the file, Debt Management System (DMS), and Modernized Claim System (MCS) with a Report of Contact (RPOC) or SSA-5002 to record receipt of a full refund and for Title II claims establish a recovery of overpayments, accounting and reporting (ROAR) record via the SMED screen per the instructions in SM 00610.772B.7;

  2. b. 

    Process the remittance for credit to the trust fund for Title II refunds, to the general fund for Title XVI refunds, or both, per FO instructions in GN 02403.006 and PC instructions in its Operations Bulletins. Using DPS or AURORA, send the representative a brief letter to acknowledge receipt of the check. Use the following language:

    This acknowledges receipt of your payment of $ [enter amount of payment] in the claim of [NH’s first and last name].

    Social Security Administration

  3. c. 

    Ensure that the notice appears in the Online Retrieval System.

2. Negative response or no response

If the representative responds negatively to the request for refund, denies receipt of the duplicate or erroneous payment, or fails to reply within the required time, develop the possible fee violation per the instructions in GN 03970.017. Refer to GN 03970.013 for definitions of violations.

3. Representative inquiries

If the representative responds to the letter by requesting an explanation or further documentation, the FO and PC will comply with the request, if possible, and document the steps taken to resolve the issue(s) raised. If the matter remains unresolved, complete development for a referral to OGC.

E. References

  • •

    GN 02403.003 The Field Office Remittance Input

  • •

    GN 02403.004 How to Handle Remittances in the FO Mailroom and Reception Area

  • •

    GN 02403.005 Examining Remittances Received in the FO

  • •

    GN 02403.006 Processing Remittances Received in the FO

  • •

    GN 02405.000 Processing Unendorsed Returned Benefit Checks - Title II and Title XVI

  • •

    GN 02405.006 Returning Unendorsed Checks to the Field Office

  • •

    MS 01103.001 Debt Management System Remittance Process – Overview

  • •

    MS 01103.003 Remittance Input (REMI)

  • •

    MS 01103.006 Field Office Remittance Input (RFOR)

 

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0203970025
GN 03970.025 - Field Office (FO) and Processing Center (PC) Action on Direct Payment Errors and Possible Fee Violations - 10/08/2024
Batch run: 12/06/2024
Rev:10/08/2024