Actioning third party debts 107-04010100

If actioning:

• an undetermined third party debt, go to Step 2
• a response from a financial institution following a Request for Refund (RFR) or QSS40, go to Table 2
• a customer contact about a third party determined debt, go to Table 3 > Step 3

If the financial institution does not return the payment to the agency by the end of the review period, the system will create an undetermined debt with a keyword of '3rdparty'.

If the financial institution has not returned the original payment in full, or has not responded to the Request for Refund (RFR) letters, check if a QSS40 letter has been sent to the financial institution.

Has a QSS40 letter been sent to the financial institution?

• Yes, go to Step 3
• No:
• send a QSS40 letter requesting the return of the funds and the details of the bank account owner
• place the debt on hold for 31 days
• procedure ends here until response is received or activity becomes due

Has the financial institution responded to the Request for Refund or QSS40 letter with details of a third party?

• Yes:
• if the identified third party is under 16 years (a minor), go to Step 4
• for all other cases, go to Table 2 > Step 1
• No, go to Step 5

Note: staff must check all scanned documents on the record for the relevant period. The RFR/QSS40 letter may have been returned by the financial institution but scanned to the record under the incorrect category.

If the third party identified by the financial institution is under 16 years, staff must investigate the case as per business as usual processes. This includes assessment for all waiver provisions, see Waiving Centrelink debts.

DOC the record with details of the investigation and any contact with the third party:

• use Fast Note - select Auto Text, use Debts > General Use > 3RD Party Debt Minor
• complete the Fast Note

Investigate the record to determine if the RFR/QSS40 requests were sent to the correct financial institution and address.

The QSS40 should have been sent to the same address as the RFR letter.

Was the correspondence sent to the correct financial institution and address?

• Yes, go to Step 6
• No:
• resend the QSS40 with a copy of the original letter to the correct financial institution and address
• place work item on hold for 31 days
• if the financial institution does not respond, go to Step 6
• if the financial institution responds, go to Table 2 > Step 1

If the financial institution does not respond to correspondence or provide sufficient details to identify the third party, DOC the record with details of the investigation:

• use Fast Note - select Auto Text, use Debts > General Use > 3RD Party Debt Bank
• link the debt activity to the Fast Note. In the Document Completion field, select 'Link to existing activity'
• unassign the work item using reason Service Support Referral

Procedure ends here.

Did the financial institution confirm the customer received the payment?

• Yes, attempt to contact the customer before raising the debt, see Table 1 in Debt raising support for customers. If the customer:
• advises they did not receive the payment, go to Table 3
• contacts were unsuccessful, refer the debt. Go to Table 3 > Step 2
• does not dispute that they received the payment, raise the debt on the customer's record. Procedure ends here
• No, go to Step 2

The undetermined third party debt on the customer’s record must be finalised 'no debt' (FND).

Use the Debt Action script to FND the undetermined debt on the customer’s record. If the script is not available:

• 'S'elect the undetermined debt activity DMN/NDB on the Activity List (AL) screen
• go to the Modify/Assess Debt (OPMA) screen and complete the following:
• Calculated Amount $ field, key '0'
• FND Reason field, key the reason why the debt amount is zero (see the Resources page in Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable)
• Addtnl Reference No field, key the third party Customer Reference Number (CRN)
• press [Enter] twice to confirm the recalculated debt amount
• on the Assessment Finalisation (OPAF) screen, in the Finished? (Y/Q/N) field, key:
• 'Y', or
• 'Q' if the activity is to be Quality On Line (QOL) checked
• press [Enter]

Record the details on a DOC. Do not include the CRN or other identifying details of the third party on the debt DOC.

If the payment has not already been reissued to the customer, see Reissue a payment at a customer's request.

Undertake a thorough search to identify if the third party has an existing customer record. See Searching for a customer on the system.

Does the third party have a customer record?

• Yes, go to Step 4
• No, create a new record for the third party. See:
• Adding a customer to the system
• Creating a new organisation debt record on the Debt Management and Information System (DMIS)
• go to Step 4

Can the debt be raised using the Debt Action script?

• Yes, go to Step 5
• No, go to Step 6

Recreate the debt shell on the third party record using the Debt Action Script in Customer Record but do not finalise the debt:

• ensure the CRN of the intended party is recorded on the Debt Comments (OPDC) screen. Do not include the CRN or other identifying details of the intended party in the debt DOC
• if the third party bank account has joint account holders, raise the debt against all parties, see Recovery from mutually liable co-debtors

Attempt to contact the third party before raising the debt, see Table 1 in Debt raising support for customers. If the third party:

• advises they did not receive the payment or they do not have legal access to the bank account, go to Table 3 > Step 1
• contacts were unsuccessful, refer the debt. Go to Table 3 > Step 2
• does not dispute that they received the payment, raise the debt

Procedure ends here.

Manually recreate the debt shell on the third party record but do not finalise the debt. See Create a new debt record manually on the Debt Management and Information System (DMIS).

The Benefit Type is the type of payment incorrectly paid.

Third party debt Reason codes are:

• CTD - Centrepay Third Party debt
• RFO - Incorrect bank account (Third Party)

Do not include the CRN or other identifying details of the intended party in the Debt DOC. Instead:

• go to the Debt Comments (OPDC) screen
• record the CRN of the intended customer

Attempt to contact the third party before raising the debt, see Table 1 in Debt raising support for customers. If the third party:

• advises they did not receive the payment or they do not have legal access to the bank account, go to Table 3 > Step 1
• contacts were unsuccessful, refer the debt. Go to Table 3 > Step 2
• does not dispute that they received the payment, raise the debt manually:
• if the third party bank account has joint account holders, raise the debt against all parties, see Recovery from mutually liable co-debtors
• procedure ends here

If the customer has advised that they are victims of unauthorised access to their online account, and their payment destination/s have been altered without their consent or knowledge, staff must follow the Identity fraud procedure to:

• undertake all required remediation and escalations on the customer’s record
• warm transfer the customer to Scams and Identity Theft Helpdesk (SAITH):
• if it is outside SAITH operation hours, give the customer the SAITH number and encourage them to call at another time
• go to Step 2

If the customer advises they have legal access to the bank account and received the payment, the debt is legally recoverable:

• raise the debt, see Actioning an undetermined debt on the Debt Management and Information System (DMIS)
• procedure ends here

Where customer contact is unsuccessful or the customer has advised they are a victim of unauthorised access or identify theft, staff must DOC the record with details of the investigation:

• use Fast Note - select Auto Text, use Debts > General Use > 3RD Party Debt Fraud
• link the debt activity to the Fast Note. In the Document Completion field, select 'Link to existing activity'
• unassign the work item using reason Service Support Referral

Procedure ends here.

If the customer has advised that they are victims of unauthorised access to their online account, and their payment destination/s have been altered without their consent or knowledge, staff must follow the Identity fraud procedure to:

• undertake all required remediation and escalations on the customer’s record
• warm transfer the customer to Scams and Identity Theft Helpdesk (SAITH):
• if outside SAITH operation hours, give the customer the SAITH number and encourage them to call at another time
• staff must also provide the customer with their internal review options, see Initial contact about a decision and the review of decision process.
• go to Step 4

If the customer:

• has legal access to the bank account and received the payment, the debt is legally recoverable
• requests an explanation or wants to apply for a formal review of the decision, see Initial contact about a decision and the review of decision process, and:
• offer the customer the option of pausing debt repayments until their request for an explanation or formal review of the decision is complete

Procedure ends here.

Document any details of the debt investigation (and customer conversation if applicable):

• use Fast Note - select Auto Text, use Debts > General Use > 3RD Party Debt Fraud
• complete the Fast Note