Reissue a payment returned from a financial institution – includes deceased customers 103-04040020

When a payment has been returned to the agency by a financial institution, a Manual Follow-up (MFU) activity titled 'unsolicited refund' will show on the customer's record stating 'Unsolicited direct credit return'.

Before reissuing the payment to the customer, the Service Officer must check the customer's:

• payment destination details are correct
• entitlement to the payment

On occasion payments are issued to customers in error. The customer may only have been entitled to some of the funds or may have had no entitlement at all.

Before reissuing the payment to the estate, the Service Officer must check that:

• the customer's executor details have been recorded correctly (if applicable)
• there is an appropriate person that any outstanding amount can be paid to, and
• the customer was entitled to the payment

If the estate advises payment has not been received, and they have been advised by the financial institution that the payment has been returned, but it does not appear as a returned payment on the customer's record, no action is to be taken until the payment has been recorded as returned. Note: it can take up to 2 business days from the date payment was automatically returned to appear on the customer's record.

An appropriate person can be the next of kin, solicitor or executor handling the estate, or the person who has paid or is liable to pay the funeral expenses.

Follow the process in Reissue a payment or cheque at a customer's request if:

• the customer advises payment delivered by credit or RTGS has not been received
• the customer claims to have been advised by the financial institution that the payment has not been returned
• it does not appear as a returned payment on the customer’s record

Note: it can take up to 2 business days from the date a payment by direct credit or RTGS was automatically returned to show on the customer's record.

Unsuccessful payments delivered via the NPP will be returned immediately.

If a payment has only been partially returned, the system will only allow reissue of the returned amount.

Where the customer requests the full payment be reissued:

• they must be advised that if the original funds cannot be fully recovered
• a Duplicate Instalment debt will be raised for investigation
• if it is determined that the customer benefited from the original payment, they will be liable for the debt

A manual return needs to be created if:

• a financial institution, customer or third party has returned a payment by bank cheque or cash to a service centre, and
• claims it was received in error, or
• objects to receiving the payment

Follow the process in Processing a returned payment.

Note: it can take more than 2 business days from the date payment was returned by bank cheque to show on the customer's record.

For customers who have a payment issued from their Income Management account returned from a financial institution, the funds will be automatically re-credited to their Income Management account. A new payment will need to be issued to the customer from their Income Management account.

The Paid Parental Leave Employer Processing Team (PPLEPT) is responsible for re-issuing Parental Leave Pay (PPL) returned payments where PPL delivery is through the employer. See Delivery of Parental Leave Pay (PPL).

If an ABSTUDY third party payee such as an Education institution, Residential college or Boarding schools/hostel has changed their bank account details without notifying the agency, this will result in payments to these third parties being returned and a MFU activity created.

The Third Party Payment Details (PDD) screen, accessible by ‘S’electing the payment line on PS and selecting ‘Continue (enter)’ twice, will display any rejection/reissue details. See the Returned payments to third parties step on the Process page.