Section 4: Protests
This section consists of the following topics:
- General Information
- How to Protest a Check Reclamation
A protest is a request that the Bureau of the Fiscal Service (Fiscal Service) review its decision regarding the financial institution's liability for a check reclamation.
It raises a valid legal or factual question and includes:
- A written statement; and,
- Supporting documentation which proves that the financial institution is not liable for the reclamation
Interest, penalties, and administrative fees will continue to accrue while the protest is under review.
The check reclamation can be paid by the financial institution to avoid the direct debit or accruing interest and penalties while the protest is under review. If the protest is substantiated, the amount paid will be returned to the financial institution, if appropriate.
Note: Unpaid Reclamations which are under protest are identified by a code B in the Reclamation Status column on the Summary of Debt Statement.
Listed below are examples of unacceptable protests.
- Protests that are received after 60 days from the reclamation date.
- Protests that include no or insufficient documentation to substantiate the protest.
- Protests that attempt to transfer liability from the financial institution to the financial institutions prior endorser.
- Protests from any other entity than the financial institution to which the reclamation was directed.
How to Protest a Check Reclamation
The table below describes the process to protest a check reclamation.
Table may scroll on smaller screens
|1||Write a letter to the Reclamation Branch requesting a review of its decision regarding the financial institution's liability for
the check reclamation.
The protest must include the check symbol and the check serial number so that the record can be identified in the Fiscal Service system.
|2||Attach documentation to support the protest.
Documentation may include, but is not limited to...
|3||Retain a copy of the Notice of Direct Debit (U.S. Treasury Check Reclamation) while the reclamation protest is being considered.|
|4||Mail or fax the protest to:
Department of the Treasury
Bureau of the Fiscal Service
P.O. Box 515
Philadelphia, PA 19105-0515
Fiscal Service Response
Fiscal Service will send a letter to the appropriate financial institution providing status or the outcome of the protest within 60 days of receiving the protest.
The accumulated credit will be returned to the financial institution.
The reclamation will be abandoned and a disregard notice will be sent to the financial institution.
A denial letter will be sent to the financial institution and the case will be closed.
A denial letter will be sent to the financial institution. The financial institution will remain liable for the reclamation principal, interest, penalty, and administrative fees. The amount owed will be debited from the financial institutions Master Account five calendar days after the bank protest is denied.