SSI Payments to Deceased Customer

Answered by:

Question:

Family members of one of our customers came in to let us know our customer (sole-owner account) passed away; we now have a copy of the death certificate. The day after this happened, an SSI payment came into the account. Do we wait for the Government to reclaim the payment or should we return it?

Answer:

I suggest you return it; don’t wait to be contacted. Too many things can go wrong and you want to make sure those funds are sent back so the bank doesn’t become liable. The type of ACH return you send will notify the government that the customer is deceased.
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Learn more about Rayleen Pirnie’s webinar
Advanced ACH: Death Notification Entries and Reclamations: A Banks Responsibilities