(a) Notification of error to the agency. If, after the RDFI responds fully to the notice of reclamation, the RDFI learns
that the recipient or beneficiary is not dead or legally incapacitated or that the
date of death is incorrect, the RDFI shall inform the agency that certified the underlying
payment(s) and directed the Service to reclaim the funds in dispute.
(b) Resolution of dispute. The agency that certified the underlying payment(s) and directed the Service to
reclaim the funds will attempt to resolve the dispute with the RDFI in a timely manner. If the agency determines that the reclamation was improper, in whole or in part,
the agency shall notify the RDFI and shall return the amount of the improperly reclaimed
funds to the RDFI. Upon certification by the agency of an improper reclamation, the Service may instruct
the appropriate Federal Reserve Bank to credit the account utilized by the RDFI at
the Federal Reserve Bank in the amount of the improperly reclaimed funds.
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