How to Exchange Damaged or Mutilated Money

Replacement for Shredded Money and Damaged Currency

Sep 8, 2009 Allen Williams

Severely damaged money can be exchanged through a government agency. Submitting a claim requires determining if the mutilated money meets the claim guidelines.

Money is not indestructible and can become severely damaged, either through normal wear or a more tragic event. Older generations may store money in their homes only to discover it is nibbled on by mice. For luckier people, a rusty tin can containing a wad of decomposing bills is found in the yard. Most commonly it is damaged by fire, water, rodents, insects or through the act of being buried. Regardless how the money damage occurs, there is recourse.

The Bureau of Engraving and Printing is the government agency which reviews claims and reimburses for mutilated banknotes. The Federal Emergency and Management Agency (FEMA) states 30,000 claims are submitted each year and reimbursement checks totaling $86 million are sent out by the Bureau of Engraving and Printing.

Before filing a claim, the currency should be evaluated to determine if it meets the Bureau exchange requirements. First, it must be established whether the currency meets the guidelines of mutilated money.

What is Considered Damaged or Mutilated Money?

The general rule is that the money must be significantly damaged, yet identifiable as U.S. currency. In some cases, it may be difficult to determine the banknote value due to excessive damage.

  • If more than 50% of the note is identifiable as U.S. currency, or
  • If 50% or less of the note is identifiable as U.S. currency, and supporting evidence proves that the remaining portion of the currency is destroyed.

What is Not Considered Mutilated Money?

Money which is merely soiled, dirty, wet, defaced, limp, or torn should not be submitted to the Bureau. Instead, these items can be taken to a local bank for exchange. The local bank should also be able to provide further guidance if the notes are damaged to an extent outside of its control.

Filing a Claim for Mutilated Money

Damaged money can be mailed or personally delivered to the Bureau of Engraving and Printing. The claim should:

  • Include a letter with an estimated amount for the currency claim along with an explanation as to how the money became damaged. Provide enough detail to assist examiners in assessing the claim.
  • Be carefully packed such that the notes do not become further damaged while shipping
  • Mailed registered mail with return receipt requested

Complete details for shipping mutilated money can be found on the Bureau of Engraving and Printing website.

Each year the Bureau of Engraving and Printing processes many thousands of mutilated money claims and sends out reimbursement checks. It is important to know the guidelines for submitting a claim, as notes with lesser damage can likely be processed at a local bank. For money suffering greater damage, a claim mailed to the government agency is the best course of action.

Sources:

Federal Emergency and Management Agency (FEMA) website accessed September 8, 2009

Bureau of Engraving and Printing (BEP) website accessed September 8, 2009

The copyright of the article How to Exchange Damaged or Mutilated Money in Consumer Education is owned by Allen Williams. Permission to republish How to Exchange Damaged or Mutilated Money in print or online must be granted by the author in writing.
Damaged Currency Can Be Exchanged, MorgueFile, Alvinamm Damaged Currency Can Be Exchanged