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Treasury's Bureau of Engraving and Printing Will Reimburse You for Damaged U.S. Currency

(Courtesy of Treasury's Bureau of Engraving and Printing)

The Bureau of Engraving and Printing (BEP) examines and reimburses businesses and individuals for their damaged or mutilated money. This service may be of particular interest now to the recent victims of flooding in California, Nevada, and Idaho. Stores, restaurants, hotels, and other businesses and individuals may have U.S. paper currency that has been damaged from the flood waters and mud.

Money that has been burned, wet or buried for a long time, seriously torn or shredded, or spilled on by chemicals are the most frequent types of mutilation seen by BEP's Office of Currency Standards that provides this service. The Office also gets an increase in claims when a natural disaster occurs such as floods, fires or hurricanes.

Every year the Bureau handles more than 30,000 mutilated currency claims and sends out reimbursement checks for over $86 million.

If the currency is only wet as a result of the flooding and not damaged in any other way, it may be able to be exchanged for new notes immediately at a local bank or Federal Reserve Bank rather than sending it to Washington, D.C. to be examined before reimbursement. If the currency is only wet, and not torn or ripped apart, the currency notes should be separated as soon as possible, and placed between paper towels. When they are dry, the notes should be taken to a local commercial bank where new currency notes for the same amount will be exchanged.

If, however, the currency is more seriously damaged or mutilated, it must be sent to the BEPâs Office of Currency Standards for examination and identification after which the Office of Currency Standards will reimburse the claimant for its face value by a U.S. Treasury check. Specifically, mutilated currency can be exchanged at face value if: 1) more than 50% of a currency note is present and identifiable; or 2) 50% or less of a currency note is present and the submitted evidence justifies the method of mutilation and the U.S. Treasury is satisfied that all missing portions of the currency note have been totally destroyed.

Mutilated currency can be mailed or personally delivered to the Bureau of Engraving and Printing. A letter should accompany the submitted currency and give the estimated value of the currency and explain how the currency was mutilated. All mutilated currency should be sent by "Registered Mail, Return Receipt Requested" to: Department of the Treasury, Bureau of Engraving and Printing, Office of Currency Standards, P.O. Box 37048, Washington, D.C. 20013. Insuring the shipment is the responsibility of the sender.

The Bureau's special currency examiners are usually able to determine the value of mutilated currency when it has been carefully packed and boxed as described below:

  1. Regardless of the condition of the currency, DO NOT disturb the fragments any more than is absolutely necessary.
  2. If the currency is brittle or inclined to fall apart, pack it carefully in plastic without disturbing the fragments, and place the package in a secure container.
  3. If the currency was mutilated in a purse, box, or other container, it should be left in the container to protect the fragments from further damage.
  4. If it is absolutely necessary to remove the fragments from the container, send the container along with the currency and any other contents that may have currency fragments attached.
  5. If the currency was flat when mutilated, do not roll or fold the notes.
  6. If the currency was in a roll when mutilated, do not attempt to unroll or straighten it out.
  7. If coin or any other metal is mixed with the currency, carefully remove it. Any fused, melted, or otherwise mutilated coins should be sent for evaluation to the: Superintendent, U.S. Mint, P. O. Box 400, Philadelphia, PA 19105.

The amount of time needed to process each case varies with its complexity and the case workload of the examiner. For cases that are expected to take longer than four weeks to process, BEP will issue a written confirmation of receipt.

Last Modified: Wednesday, 11-Aug-2010 14:49:38 EDT