GN 02402.090:
Direct Deposit Cancellation
Effective Dates: 05/25/2011 - Present- Effective Dates: 08/03/2018 - Present
TN 40 (04-11)- TN 109 (08-18)
GN 02402.090 Cancellation of Direct Deposit- GN 02402.090 Direct Deposit Cancellation
A. Policy for direct deposit cancellation- Direct deposit cancellations can occur when the beneficiary, recipient or representative payee:
- * requests the cancellation,
- * indicates that fraud is involved,
- * the account is closed,
- * dies,
- * is having issues with financial institution regarding overdraft/fees, or
- * when cancelled by the financial institution.
1. What cancels direct deposit?- NOTE: A change in the claims symbol or entitlement to a new benefit (e.g.; B to D or D after A) does not cancel direct deposit.
The following events cancel direct deposit.* The beneficiary or representative payee dies or* The beneficiary or representative payee requests direct deposit cancellation.- A. Handling direct deposit cancellation requests
2. What change does not cancel direct deposit?- The beneficiary, recipient or representative payee can request to cancel a direct deposit authorization at any time in person, by phone to the FO or processing center (PC) or by calling the National 800 Number.
A change in the claims symbol or entitlement to a new benefit (e.g., B to D or D after A) does not cancel direct deposit.- However, inform the beneficiary, recipient or representative payee that the Department of the Treasury (Treasury) requires existing entitled beneficiaries, recipients and representative payees to receive some form of an electronic payment.
B. Actions when the beneficiary or representative payee can request cancellation- Follow the Direct Deposit Information for all types of Interviews in GN 02402.005E. and GN 02402.005F.
1. Cancellations by beneficiary or representative payee- B. Cancellation requests by beneficiary, recipient or representative payee
The beneficiary or representative payee can request to cancel a direct deposit authorization at any time in person, by phone or in writing. However, inform the beneficiary or representative payee of Treasury’s requirement that existing entitled beneficiaries and representative payees (prior to May 1, 2011) must receive an electronic payment by March 1, 2013. Follow the Direct Deposit Information for all types of Interviews in GN 02402.005E. and GN 02402.005F.- When the beneficiary, recipient or representative payee requests cancellation:
- * Obtain an updated payment address,
- * Remove the direct deposit information,
- * Inform the beneficiary, recipient or representative payee to keep the account open with the FI until the first paper check arrives in the mail at their payment address.
- * Inform the beneficiary, recipient or representative payee that Treasury will contact him or her about continuing to receive payments via paper check and how to apply for an exemption; and
- * Inform the beneficiary, recipient or representative payee that Treasury will make an exemption determination and inform him or her of their decision.
When the beneficiary or representative payee requests cancellation:* obtain an updated payment address,* remove the direct deposit information,* advise the beneficiary or representative payee to keep the account open until the first check arrives.- C. Cancellations by financial institutions (FI)
2. Cancellations by financial institutions- When an FI accepts the first direct deposit payment, it establishes an agreement to honor the direct deposit request and is responsible and liable for the payments on a continuous basis. Although it is rare, the FI can cancel this agreement by providing the beneficiary, recipient or representative payee with written notice.
When an FI accepts the first direct deposit payment, it establishes an agreement to honor the direct deposit request, as well as the responsibility and liability for the payments on a continuous basis. Although it is rare, the FI can cancel this agreement by providing the beneficiary, not SSA, with written notice.- The payment will continue to go to the FI until the beneficiary, recipient or representative payee notifies us to cancel direct deposit or post new direct deposit information to the record.
C. References* GN 02402.001, Direct Deposit as a Form of Electronic Payment* GN 02402.005, Direct Deposit Information for All Types of Interviews- NOTE: The FI returns payments to us when they no longer honor the agreement.
- D. References
- * GN 02402.001 Direct Deposit as a Form of Electronic Payment
- * GN 02402.005 Direct Deposit Information for All Types of Interviews
- * GN 02402.025 Direct Deposit Post Entitlement Interview
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