I Spent some of my Long-term Backpay


The title says it all…I got a direct deposit in my bank account for almost $11,000 and was to reimburse my LT insurance company. I am supposed to be on both now…1/2 LTI and 1/2 CPP Disability. However, I have spent $2,000 of the reimbursement money on bills. What do you think will happen? Will I get charged with fraud? Will I get cut off LTI? Will they keep my cheques until it is paid back? Will they let me pay it back over time? Any experience with this problem? Any help will be greatly appreciated!!!


No experience but it is not fraud.

Most likely they will apply the amount you owe to your future LTD payments.

Just explain the situation to your LTD insurer and see what they will propose.


It is not fraud! A lot of policies have a time limit to payback. Send them what you have and work it out from there. Breathe!


Thanks so much for the info!!! I especially like like the "breathe " part…I can now!!!


Thanks for the reply!!!


That is great advice.

Don’t worry bonniebones, it’ll work out.


Allyoops is great and a wealth of knowledge.


When I got CPP-D, they automatically cut my cheque by the amount CPP-D was paying. In your case, they will probably suggest that they cut your LTD payments further to get back the $11,000. Hopefully you can arrange something palatable. they may ask you to give them the $9000 ASAP.

Save funds for taxes on the $11,000, unless you already had them removed prior to payout.

Let us know how it goes.