Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA clarifies questions on post-death benefit payment collections
WASHINGTON (5/5/14)--Receiving depository financial institutions (RDFIs) are liable for all benefit payments received after the death of a recipient, unless they meet certain requirements, the Credit Union National Association clarified in a CompBlog post.

According to U.S. Treasury regulations, an RDFI will not be liable if it:
  • Certifies that it did not have actual or constructive knowledge of the recipient's death or incapacity at the time of the deposit of any post-death benefit payments;
  • Returns all post-death benefit payments it receives after it learns of the death; and
  • Responds to the Notice of Reclamation completely and adequately, so that it is received by the Government Disbursing Office within 60 days from the date of the notice.
Credit unions should first determine the balance of a given account when it receives a notice of reclamation from the government. If there are insufficient funds, a partial payment should be remitted to the Government Disbursing Office that issued the reclamation, CUNA wrote.

The Treasury says financial institutions may not attempt to reclaim funds if all or part of post-death benefit payments have been withdrawn from an account. "If the RDFI does so, it acts under its own authority in terms of its contract with its depositor or under state law," according to the agency.

For the full CompBlog post, use the resource link.
Other Resources

CUNA CompBlog Q&A
RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
21 minutes ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
54 minutes ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
3 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
4 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
5 hours ago