Got A Torn Dollar Bill? Don't Send It to the Federal Reserve — Send It Here Instead

The Federal Reserve addressed a common question about damaged or mutilated currency in a tweet on Wednesday. The tweet advised consumers not to send damaged currency directly to the U.S. central bank.

What Happened: The post included a link to a detailed FAQ on the Federal Reserve’s website. It explained that individuals, financial institutions, and businesses should contact the Department of the Treasury’s Bureau of Engraving and Printing for issues related to mutilated currency.

The BEP’s Mutilated Currency Division offers free services to the public for redeeming damaged currency. The tweet emphasized that consumers should not send any currency directly to the Federal Reserve.

For more information on what constitutes mutilated currency and how to submit a request for examination, the tweet directed users to visit the BEP’s website. It also noted that not all damaged currency needs to be sent to the BEP; for example, dirty or worn currency can be exchanged at commercial banks.

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Why It Matters: This clarification is crucial for consumers and businesses dealing with damaged currency. The BEP’s Mutilated Currency Redemption service ensures that individuals can redeem damaged notes without confusion. By directing consumers to the appropriate channels, the Federal Reserve helps maintain the integrity and usability of U.S. currency.

The BEP processes over 22,000 requests annually to examine mutilated currency, with a total value exceeding $35 million, according to the bureau’s website. Mutilated currency includes notes that are severely damaged or partially destroyed due to various causes such as fire, water, chemicals, and animal damage.

To qualify for redemption, more than 50% of a note must be present and identifiable, or if less than 50%, evidence must show the missing portions were destroyed. Redemption is denied if there is evidence of intentional mutilation, fraud, or criminal activity.

The Director of the BEP holds the final authority on redemption decisions, ensuring that all claims are thoroughly assessed according to strict guidelines.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.