In the Federal Register issued on December 20, 2017, the U.S. Mint announced the Mutilated Coin Redemption Program is slated to resume on January 19, 2018. The mutilated coin program was suspended in 2015.
Since then, scrap recyclers have been holding millions of dollars worth of mutilated coins. ISRI has made it a top priority to have the moratorium lifted.
The U.S. Mint has now revised the program to establish procedures for certifying participants based on submission amounts and frequency (required every three years for those participants whose recurring submissions exceed the annual submission threshold unless the Mint decided that is not necessary), sampling submissions to authenticate material, conducting site visits for certain participants, and requiring information about how the submissions came to be bent or partial.
The Mint also announced revisions to the redemption rates and clarified those rates for current and uncurrent coins with new ways to redeem the value for uncurrent coins. It further announced it will no longer accept fused coins or mixed coins that include coins of several alloy categories presented together with the exception of bent or partial one-cent coins and $1 coins that are presented in mixed years. Finally, the Mint put the public on notice that the Mint Director may provide information pertaining to any bent or partial coin submission to law enforcement officials or third parties for purposes of investigating related criminal activity or seeking civil judgements. The revisions also notify potential participants that they may be held criminally and or civilly liable, fined or imprisoned for fraudulent submissions.
ISRI provided comments throughout the process beginning with letters to the Mint requesting the program be resumed immediately. In the letters, ISRI explained that the scrap recycling industry acquires these coins when used automobiles, vending machines, pay telephones, and other sources are shredded and the materials are separated. ISRI also recommended several approaches to help the Mint protect the integrity of the U.S. currency including certification, site inspections, certain acceptance restrictions, and additional documentation. This detailed information provided through letters, regulatory comments, and meetings with the U.S. Mint gave the answers needed for the Mint to resume this very important program to the industry.
Please contact ISRI Chief Lobbyist Billy Johnson
with any questions.