TN 109 (08-18)

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.

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.

A. Handling direct deposit cancellation requests

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.

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.

Follow the Direct Deposit Information for all types of Interviews in GN 02402.005E. and GN 02402.005F.

B. Cancellation requests by beneficiary, recipient or representative payee

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.

C. Cancellations by financial institutions (FI)

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.

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.

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