Question
Can Unum deny my request to pay them back (overpayment) on a monthly basis?
Due to an illness, I was placed on long-term disability with Unum by my employer. Recently Unum contacted me and after reviewing my case has determined that I have been overpaid over $50,000. I haven’t worked since November, 2006 and offered to pay the money back on a monthly basis. Unum said no. Unum I told Unum what a hardship I am experiencing and withholding my LTD monthly check is putting me in a very difficult position because my SSD check is not enough to meet monthly bills. Can Unum refrain from working with me? Do I have any options or recourse with them?
Answer
Geneva, unfortunately, yes. There are no requirements under the policy for Unum to be amenable to a repayment plan of an overpayment. With that being said, it is important to determine if the basis of the overpayment is valid. If it is for SSDI, then they have a right to recovery. Other sources they may not. With respect to repayment arrangements- withholding benefit check is by far the most common arrangement they will undertake. At times they will consider a lump sum buyout of the claim; however, this will include taking the $50,000.00 right of the top of any considered amount.
