- (FCRC) Interview the client about the cashed check.
If the client admits cashing the check:
- (FCRC) Run a Recipient Ledger (PF6) to determine if the check was replaced.
- If the check was replaced, start recovery action (see WAG 22-02-01).
- (FCRC) Send WCU/HFS WCU the check (no copies are accepted) with a memo stating the 2nd endorser's name, full address and zip code, telephone number, FEIN number, and contact person. The memo must state that the client admitted
cashing the check and tell whether or not recovery action was started.
- (WCU/HFS WCU) Reimburses the 2nd endorser when the client admits cashing the check.
If the client denies cashing the check:
- (FCRC) Obtain the client's signature on 8 Forms 1403.
- (FCRC) Send the following to WCU/HFS WCU:
- the original check;
- one Form 98;
- 8 Forms 1403; and
- a memo that includes the 2nd endorser's name, address and zip code, telephone number, FEIN number, contact person, a report of the findings of the interview with the client, and whether or not the check was replaced.
- (WCU/HFS WCU) Refer the materials to the Examiner for an examination of the endorsement signature in question.
- (Examiner) Completes an examination of the endorsement and returns the stopped check with the findings to WCU/HFS WCU.
If the examination determines the endorsement is not genuine:
- (WCU/HFS WCU) Does not issue reimbursement.
- Returns the stopped check to the FCRC.
- (FCRC) Send the stopped check back to the 2nd endorser informing them of the decision.
If the endorsement signature is genuine:
- (WCU/HFS WCU) Authorizes reimbursement.
- (FCRC) Start recoupment action if an overpayment occurred.