CPP (DISABILITY) Seized by Bank

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CPP (DISABILITY) Seized by BankCPP (DISABILITY) Seized by Bank

I was seriously injured in a car accident over 6 years ago.  At the time of the accident, I had a Credit Card with one of the major banks.  Up to that time, the card was always paid on time.  After the accident, I defaulted on the card since I was unable to make payments.

I have been living on borrowed money from loved ones.  My application for CPP Disability Benefits was made in 2009 and only this year was approved.

They back paid me to 2009.

They asked for a bank account # to deposit the funds, I provided them bank account numbers.  CPP Deposited over $50,000 into my account, for 6 years back pay on CPP.  When I arrived at the bank, the teller informed me that the bank had seized the funds due to an old visa card I had.

When I phoned CIBC they at first seemed open to negotiating, even asking for some sort of payment, and said “We never said we won’t return the funds,” but after reviewing my file and paperwork they tell me they will not return any of my funds.

This is all the money I have in this world.  6 years waiting, I owe many people and I will be not only disabled but homeless.

What advice can you provide?

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I am assuming you did not file bankruptcy for the credit card debt.

All the credit card agreements I have seen, which you would have signed, state the credit card company has the right of set-off.  i.e. The right to take funds in a bank account to set off against monies owed.

I suggest you do the following:

  1. Set up a different bank account, with a bank you do not owe money to, and advise CPP Disability Payments to make subsequent deposits there.   As soon as the deposit is made remove the funds so a court order initiated by the credit card company cannot seize the funds.
  2. Ask the Bank/Credit Card company for a copy of the Agreement, with your signature, giving them the right to set off funds in the bank against the debt owed.
  3. Consult an Insolvency Lawyer to see if they can recover the funds.
  4. If your debt is significant consider filing bankruptcy.Bankruptcy Canada Licensed Insolvency Trustee

Yours truly,

 

Earl Sands, LIT

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