GN 02403.156:
Money Orders Received from Bankrupt Money Order Companies
Effective Dates: 04/10/2000 - Present- Effective Dates: 10/23/2017 - Present
TN 12 (04-00)- TN 20 (10-17)
- GN 02403.156 Money Orders Received from Bankrupt Money Order Companies
A. INTRODUCTION - MONEY ORDER COMPANY DECLARED BANKRUPTCY- A. Introduction – Money order company declared bankruptcy
- There may be occasions when a money order company declares bankruptcy, or otherwise goes out of business or closes its account.
B. PROCEDURE - MONEY ORDER COMPANY DECLARED BANKRUPTCY- B. Procedure – Money order company declared bankruptcy
Whenever a FO becomes aware that a money order company has declared bankruptcy, or taken some other action which renders the money orders worthless,* Immediately notify the regional office, which will then FAX the information about the bankruptcy to the Office of Financial Policy and Operations (OFPO) in Baltimore, at 410-965-0384. (OFPO will issue an appropriate NEWS item).- Whenever a field office (FO) becomes aware that a money order company has declared bankruptcy, or taken some other action which renders the money orders worthless, the FO takes the following actions:
- * Immediately notifies the regional office, which will then FAX the information about the bankruptcy to the Office of Financial Policy and Operations (OFPO) in Baltimore, at 410-965-0384. OFPO will issue an appropriate NEWS item; and
- * Stop accepting money orders from that company.
In those cases where the MATPSC learns about the problem with the money order company after a money order has been accepted, notify OFPO by phone (or use the above FAX number), forward the returned remittance and a photocopy of the FORT to the FO. The FO will:* Void the original receipt in DMS after cross-referencing it to the remittance ID field of the new receipt.* Notify the remitter that the money order was not acceptable, and that a replacement remittance should be submitted.* If a replacement is submitted, issue a new receipt, and forward the payment to the MATPSC via a new FORT.* Provide as much information as available, so the remitter may file a claim against the money order company.* Extend the remitter's installment agreement timeframe an additional month.- In those cases where the Mid-Atlantic Payment Service Center (MATPSC) learns about the problem with the money order company after a money order has been accepted, MATPSC will notify OFPO by fax at the number above, and forward the returned remittance and a photocopy of the Field Office Remittance Transmittal (FORT) to the FO.
SSA may not give credit for the returned remittance if it was purchased by the debtor; however, if SSA purchased the money order, credit the debtor's account and file a claim against the company to recover the purchase price of the money order.- The FO takes the following actions:
- * Notify the remitter that the money order was not acceptable, and request a replacement remittance.
- * If the remitter submits a replacement remittance, issue a new receipt, and forward the payment to the MATPSC via a new FORT.
- * Delete the original receipt in DMS, see MS DMS 004.011, after cross-referencing it to the remittance ID field of the new receipt.
- * Provide the remitter with as much information as available, so the remitter may file a claim against the money order company.
- * If the remittance is for an installment, extend the remitter's installment agreement timeframe an additional month. See MS DMS 006.014.
- The Social Security Administration (SSA) may not give credit for the returned remittance if it was purchased by the debtor; however, if SSA purchased the money order to process a cash remittance, credit the debtor's account and file a claim against the company to recover the purchase price of the money order.
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