Table 3-B How to Respond to the Notice of Reclamation
1.
Immediately determine the account balance amount. While not required under 31 CFR 210, it is in the RDFI's interest to protect the funds or return immediately any remaining balance up to the amount of the Reclamation. This minimizes the risk of incurring liability for the withdrawal of any post-death benefit payments.
2.
Check for other types of federal benefit payments that the deceased may have been receiving and take steps to ensure prompt return of all subsequent post-death benefit payments.
If the account remains open and additional federal benefit payments on this case are credited to the account before the RDFI replies, then those deposits become part of the amount that must be paid in response to the Notice of Reclamation, not to exceed the outstanding total.
3.
Promptly mail the Notice to Account Owners* (Part 5) to the last known address(es) of the account owner(s).
4.
Notify the account owner(s) of any action that the RDFI has taken or plans to take against the account.
5.
If you have met the criteria listed in steps 1 - 4 and have also complied with the Limiting Liability section, then proceed to 5b and then 6.
If not, proceed only to 5a.
5a.
Steps to take Under Full Liability
Respond to the Notice of Reclamation so that it is received by the Government Disbursing Office within 60 days from the date of the Notice.
If the RDFI fails to meet the qualifications for limiting its liability, it is liable for all benefit payments received after the death or legal incapacity of a recipient or death of a beneficiary. The RDFI must return all post-death payments listed on the reclamation and any subsequent benefit payments received after receipt of the reclamation, so that payments are received by the Government Disbursing Office within 60 days of the date on the reclamation.
This is the final action RDFIs take under full liability.
5b.
Steps to take Under Limited Liability
Respond to the Notice of Reclamation so that it is received by the Government Disbursing Office within 60 days from the date on the Notice.
Previously repaid to the federal government (e.g., by the beneficiary's survivor)
The RDFI's obligation to the federal government has been satisfied and the RDFI must return the Notice of Reclamation, attaching proof of the repayment, so that it is received by the Government Disbursing Office within 60 days of the date on the
Notice. (See Acceptable Proof).
6. IF the account balance amount is
THEN
Equal to or greater than the outstanding total
The RDFI must return the full amount listed on the Notice of Reclamation by ACH, not to exceed the outstanding total, within 60 days of the date on the Notice.
The RDFI must also return the Notice of Reclamation so that it is received by the Government Disbursing Office within 60 days of the date on the Notice.
Complete and sign Certification #1*** and, if the RDFI had no knowledge of the death at the time the payment(s) was received or withdrawn, also sign Certification #2**** on the back of the Disbursing Office copy of the Notice of Reclamation. Original signatures are required.
Less than the outstanding total
Return an amount equal to the account balance.
Complete and sign Certification #1*** and, if the RDFI had no knowledge of the death at the time the payment(s) was received, also sign Certification #2**** on the back of the Disbursing Office copy of the Notice of Reclamation. Original signatures are required.
If the Notice of Reclamation is incorrect due to error in fact or date of death, see Learning of an Error.
In the case of payments for Social Security (SSA only), the Railroad Retirement Board (RRB) or the Department of Veterans' Affairs (VA) *****, provide the Government Disbursing Office with the following information:
Name(s) and most current address(es) of all person(s) who withdrew funds from the recipient's account after the death of the recipient; or,
If that is impossible, give the names and addresses of all co-owners and other authorized signers on this account.
If some or all of the withdrawals were by ATM, debit card, or by fraudulent means, then state that in the response, and list names and addresses of all persons authorized to use the ATM or debit cards, in addition to the names and addresses of account co-holders.
If all of the above requirements are impossible to fulfill, then the RDFI must certify that no such information is available and explain why; AND, as a last resort, provide the last known address of the deceased recipient.
* Some withdrawers may wish to restore all or part of the withdrawn post-death payments to the account upon receipt of a Notice of Reclamation to Account Owners. Repayment to the account by the withdrawer upon receipt of the Notice of Reclamation is not required
or requested by the government.
** The Outstanding Total is the sum of all federal benefit payments received after death or legal incapacity, minus any amount returned to or recovered by the government.
*** Certification #1 on the back of the Disbursing Office copy of the Notice of Reclamation certifies that: the Notice to Account Owners was sent; account owners were notified of any action the RDFI has taken or plans to take against the
account; and the RDFI took proper corrective action regarding any
error in date of or fact of death.
**** Certification #2 on the back of the Disbursing Office copy of the Notice of Reclamation certifies that the RDFI had no actual or constructive knowledge of the death at the time of deposit or withdrawal of any of the post-death payments;
and, that the RDFI has returned the amount of the account balance to
the government.
***** In the case of payments for other than SSA, RRB or VA, RDFI's are prohibited by the Financial Privacy Act from releasing information about individuals other than the payment recipient. Even though the RDFI cannot provide the information, they still can limit their liability by complying with the procedures defined in this chapter.
Acceptable proof of payment can be...
a statement of the date of return, if returned by ACH; or
copies of canceled checks used to return any partial payments (include front and back of check).
If the Government Disbursing Office rejects the proof, it will send the RDFI a Reject Notice (FMS-2940).
The Disbursing Office or authorizing federal agency will verify whether the ACH returns were accepted. If all ACH returns were not accepted or if only a partial amount was repaid, the RDFI is still liable for the balance and the reclamation process continues.
Note:
Retain your copy of the Notice of Reclamation, including your reply, and any returns for your records.
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