20 CFR 404.2022 - Who may not serve as a representative payee?
A representative payee applicant may not serve if he/she:
(a) Has been convicted of a violation under section 208, 811 or 1632 of the Social Security Act.
(b) Has been convicted of an offense resulting in imprisonment for more than 1 year. However, we may make an exception to this prohibition, if the nature of the conviction is such that selection of the applicant poses no risk to the beneficiary and the exception is in the beneficiary's best interest.
(c) Receives title II, VIII, or XVI benefits through a representative payee.
(d) Previously served as a representative payee and was found by us, or a court of competent jurisdiction, to have misused title II, VIII or XVI benefits. However, if we decide to make an exception to this prohibition, we must evaluate the payee's performance at least every 3 months until we are satisfied that the payee poses no risk to the beneficiary's best interest. Exceptions are made on a case-by-case basis if all of the following are true:
(1) Direct payment of benefits to the beneficiary is not in the beneficiary's best interest.
(2) No suitable alternative payee is available.
(3) Selecting the payee applicant as representative payee would be in the best interest of the beneficiary.
(4) The information we have indicates the applicant is now suitable to serve as a representative payee.
(5) The payee applicant has repaid the misused benefits or has a plan to repay them.
(e) Is a creditor. A creditor is someone who provides you with goods or services for consideration. This restriction does not apply to the creditor who poses no risk to you and whose financial relationship with you presents no substantial conflict of interest, and who is any of the following:
(1) A relative living in the same household as you do.
(2) Your legal guardian or legal representative.
(5) An administrator, owner, or employee of the facility in which you live, and we are unable to locate an alternative representative payee.
(6) Any other individual we deem appropriate based on a written determination.