GN 02403.156: Money Orders Received from Bankrupt Money Order Companies
Effective Dates: 04/10/2000 - Present TN 12 (04-00)
- GN 02403.156 Money Orders Received from Bankrupt Money Order Companies
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 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).
- * 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. 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.
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