Recovery of Stolen Checks Act

Floor Speech

Mr. Speaker, I am very proud today to join my colleague, Representative Malliotakis, in cosponsoring and speaking in favor of the Recovery of Stolen Checks Act.

This bill requires the Treasury to make procedures that allow taxpayers to opt in to receiving a replacement refund by direct deposit after their paper checks have been lost or stolen in the mail.

Right now, the Treasury Department is only allowed to continue sending a paper check to the same address, even though the check was stolen or lost at that very address. It is Congress' responsibility to give Treasury the ability to modernize, become more efficient, and most importantly, deliver much-needed payments to people that are relying on them as quickly as possible. This is a commonsense, straightforward, and urgent reform.

Every year, millions of Americans eagerly await their tax refund, money that they have rightfully earned. Unfortunately, criminals have exploited weaknesses in our system, stealing and cashing checks that do not belong to them. This fraud not only robs individuals of their refunds but also costs taxpayers millions of dollars annually.

The Recovery of Stolen Checks Act strengthens the government's ability to track and recover stolen refund checks. It empowers the U.S. Treasury and financial industries and institutions to act swiftly when fraud is detected, enabling that victim to get their payment much faster and that criminal to be held accountable.

With this bill, stolen checks can be flagged and traced more efficiently, victims will experience a quicker resolution and recovery process, banks and financial institutions will have clearer guidelines to prevent fraudulent transactions, and taxpayer dollars will be better protected, reducing the losses due to fraud.

Every dollar, Mr. Speaker, lost to fraud is a dollar taken from taxpayers. H.R. 1155 ensures that their hard-earned money is safeguarded and that criminals cannot exploit the system without consequences.

By closing loopholes and enhancing the recovery efforts, this legislation protects the integrity of our tax system and restores trust in financial security.

Mr. Speaker, I have had dozens of conversations with constituents who have spent months trying to receive a check from Treasury. In one instance, a constituent was sent two checks by the Treasury Department, neither delivered to her nor cashed by her before reaching out to my office for assistance. She just wanted the payment that she was owed.

Instead, the Treasury Department told her that they would only continue mailing a paper check to the same address where it had failed to get to her multiple times.

This policy is burdensome and it simply does not work. The caseworker on my staff continued to encounter cases just like this one, some taking over a year to resolve. This is way too long for the American public, and we need to do something about it. That is why this particular bill's resolution is common sense. I ask my colleagues to support it.

Mr. Speaker, I am excited about the strong bipartisan support that H.R. 1155, the Recovery of Stolen Checks Act, has received. The bill will take a critical step toward combating financial fraud and protecting hardworking Americans from falling victim to check theft.

Each year, countless Americans are targeted by criminals who steal and fraudulently cash their checks, causing financial hardship and eroding the trust in our banking system. It happens not just in tax refunds, as my colleagues have indicated. Increasingly, Social Security and SNAP benefits are also being stolen by these criminals.

This bill strengthens law enforcement's ability to investigate and prosecute these crimes, ensuring that victims can recover the money and that the criminals are held accountable.

I urge my colleagues to support this legislation for at least these three reasons: First, that the bill protects consumers from financial harm. Check fraud is not just an inconvenience, it is financially devastating to many families. When a check is stolen and cashed by criminals, victims are often left in a difficult situation.

Secondly, this bill will also strengthen law enforcement's ability to combat check fraud. Criminals have become more sophisticated in their methods, and law enforcement needs stronger tools to fight back.

Lastly, a financial system that cannot protect its users from fraud is a system in jeopardy. If consumers and businesses lose faith in their ability to securely conduct transactions, our economy suffers as a whole. H.R. 1155 ensures confidence in our banking system by ensuring that stolen checks can be recovered and that perpetrators face real consequences.

Mr. Speaker, check fraud is a growing problem, but today, we, in a bipartisan way, in the Ways and Means Committee are finally taking commonsense, decisive action. This bill passed unanimously out of our committee, and I look forward to it passing unanimously out of this House. It is, once again, an opportunity for Republicans and Democrats to put partisanship aside and work together for the American people.

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