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Q.) We have a deceased customer who has received multiple deposits for amounts ranging from $18-$285 with the description “APA Treasury 310 Misc Pay”. What exactly are these payments and are they subject to reclamation? The customer died on 10/29/2021.
A.)
Chapter 5 of the Green Book, Guide to Federal Government ACH Payments (Reclamations page 5-3) includes a list of federal benefits payments subject to reclamation (as well as examples of payments that are not). In addition to the Green Book, financial institutions may wish to review the federal regulations regarding reclamation at 12 CFR 210, Subpart B. There are other areas of the Green Book (i.e. Chapter 2, Garnishment, page 2-6) that suggest an RDFI can recognize an ACH transaction as a benefit payment if the Company Entry Description of the Batch Header Record includes an “XX” in Positions 54-55, but this section relates to garnishment of federal benefits and not the federal government’s reclamation rights. With this in mind, when the specific answer you’re looking for cannot be found in the Green Book or federal regulations, RDFIs may wish to call Treasury’s Payment Management Call Center at (855) 868-0151. This number is intended for use by financial institutions when looking for information related to Federal payments, including Social Security, VA, Railroad Retirement, etc. Call Center staff should be able to help you decided whether it is appropriate to return the transactions or allow them to post without concern for reclamation at a later date.
The information contained herein has been prepared for general informational purposes only and is not offered as and does not constitute legal advice. You should consult with your legal counsel regarding the legal, regulatory and payments industry rule requirements that apply to specific transaction scenarios.
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