by dforsythe » Mon Mar 02, 2009 02:38 am
My daughter had a small accident. She rear-ended a lady so it was pretty much cut and dry. Our appraiser came out, appraised the damage, and in a few days we received a check made out to me and the bank(lienholder). We had the car repaired at a body shop and took the check to the bank to cash. The bank said their policy was to put the check on the loan and debit out the repairs when I brought the repair invoice into them. The check was more than the repair bill so I would have liked to have had that money back. The loan officer wasn't there so I had to talk to him on the phone to asked why we couldn't have the money back. I wasn't just wanting the extra money, I explained to him that I had to put the insurance premium on our credit card the last couple of months and I wanted to apply it to that. He wouldn't budge. We were in a crunch because it was late Friday evening and the repair shop was waiting for us to come pick up the car. So after I argued with him a bit and then said well ok, if that's what we have to do, then that's what we have to do. They wrote us a certified check for the repairs and a receipt for the rest as principal payment on the car note. What makes me so mad is that when I asked why it had to be done that way, all he would say is that's just the way we do it. I really don't have a problem with the balance being paid on the car because it's to our benefit either way. I just can't see how it's legal for the bank to determine what I do with it because I pay the insurance on the vehicle and the vehicle was repaired. How can I find out if this is normal practice for lienholders? I am in Tennessee.
Thanks, Debbie
Thanks, Debbie
Posted: Mon Mar 02, 2009 05:57 am Post Subject:
I presume that you have got the check under the collision coverage of your policy. One thing you must know that the insurer is required to protect the interest of the lien holder in such cases. If it was a third party claim, and you were compensated by the at-fault driver's insurer, it could have addressed to you only. But in your case the lien-holder's name needs to get involved.
Just hang tight the experts would soon rush to your help.
Posted: Mon Mar 02, 2009 07:48 am Post Subject:
Call your insurance carrier and let them know that the bank kept the difference between the check amount and the repairs. :lol:
That way the insurance company can call and get their money back. :idea:
Posted: Mon Mar 02, 2009 01:50 pm Post Subject:
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Dasfuk,
When you say...
Call your insurance carrier and let them know that the bank kept the difference between the check amount and the repairs.
That way the insurance company can call and get their money back.
...By their money back do you mean the insurer will get dforsythe's money from the lien holder and give it back to dforsythe to use as dforsythe chooses?
Or did you mean something else??
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dforsythe,
Contact your State Banking Commision and tell them how the Lien holder handled *your* insurance settlement. You may discover that what this bank did is not an acceptable practice in the eye's of the commision.
Maybe the rules have changed in the past ten or so years.... but if I were you, I'd make the call and get *MY* money back.
FK
Posted: Mon Mar 02, 2009 02:41 pm Post Subject:
Call your insurance carrier and let them know that the bank kept the difference between the check amount and the repairs
Sorry Das but this is not good advise for the OP...here's what will happen if she calls her carrier and says this...carrier will say, 'hmm so we WAY over paid the claim, not only did you not have to pay your deductible you ALSO got money back...ok..." then they will cancel that draft, reissue one to the shop for their final repair bill MINUS Debbies deductible...she will then have to pay her deductible and also will not have any additional monies left over...
By their money back do you mean the insurer will get dforsythe's money from the lien holder and give it back to dforsythe to use as dforsythe chooses?
Don't know if that's what he meant, but that likely ain't happenin' fred.... :wink: would bet on my scenrio ... :roll:I just can't see how it's legal for the bank to determine what I do with it because I pay the insurance on the vehicle and the vehicle was repaired.
Well Debbie truth of the matter is the bank (not you) owns your car until it is paid for...let me ask you something was your account with them in good standing? absolutely no late or missing payments? It's not uncommon at all for leinholders to require that after repair (or if an insured choses not to repair) for the leinholder to require that money to go against the note...however your situation is a little different in that the vehicle has been repaired....How can I find out if this is normal practice for lienholders?
I would contact the head of this bank and discuss it, again, the state/status of your account will be key, also be sure and push that the repairs are done...let me ask you something how much 'surplus' was there? How much was your deductible ? that you clearly didn't have to pay? and how is it that there was several hundred dollars difference? Were ALL the repairs done that were written by the ins adjuster?Posted: Tue Mar 03, 2009 01:04 am Post Subject:
Sorry for my attempt at sarcasm. My point is it is obvious that the OP obtained some sort of benefit as money was left over after repairs (assuming all repairs were complete). My guess is the bank is wondering why there is an excess and is the reason for keeping the check.
Posted: Tue Mar 03, 2009 01:47 am Post Subject:
I think it worked out not too bad. At least the deduxtible was paid and the money went towards what is owed on the car. I am sure we all can use some extra money these days but if nothing can be done try looking on the bright side ...in the end it will be a car payment or two you will not have to make and that alone will save you a few dollars in interest.
Posted: Tue Mar 03, 2009 04:09 am Post Subject:
Lori and all who replied.....Yes, the account was/is in good standing. The guy that I talked to was the head of the bank. I called him the loan officer but he is actually the new bank president.
The loan officer wouldn't do anything with it without us talking to him. The repairs to the car were made.
The surplus was $532 and the deductible was $500. The appraiser was very generous and I knew he was going to be while he was looking at the car. There were a few things that he had replacing parts that had just been jarred out of place that were able to just be fixed and not replaced. I made sure with the guy that did the work that it would be safe especially since this is my teenage daughters vehicle. The guy that did the work for us is also a client of ours, so he gave us a pretty good deal on the work that he did. We have a business and had given them a good price on some work we had done in their home previously so it worked out good for us. He also fixed a couple of other little things that weren't related to that wreck and that was not in the appraisal. And he was also the body shop that the appraiser recommended.
The bank never saw the car damaged, nor did they see the appraisal. As a matter of fact, when they took the invoice and insurance check, all she looked at was the bottom line and never even read over it to see what had been done to the car. They didn't even asked why there was money left over, just if the car was repaired. At this point, I won't ask for the money back because as I said in my first post and another poster pointed out, it is to our benefit because it went toward the principal and we weren't out the deductible.
Because this guy was such a jerk about me asking why it had to go toward the loan, I want to find out if he was being shady. And if he was I want him to know that I know what he did was not right. Quite honestly, I'm just mad that I didn't have a choice in the matter. You know what the bible says about a woman scorned. :)
FK, thank you for the advise on contacting the State Banking Commission, I will research that.
And Das, I knew you were being sarcastic and thought it was funny.
I appreciate all of your different opinions and will let you know how it turns out.
Debbie
Posted: Tue Mar 03, 2009 12:29 pm Post Subject:
I am sure we all can use some extra money these days
I think she (OP) knows she did to the tune of 1032.00 plus some additional work done...dforsythe I totally get the scorned thing, but in this scenrio and for your benefit, think you'd better just 'tick a lock'' :wink:
Posted: Wed Mar 04, 2009 04:31 am Post Subject:
Lori, 'tick a clock' is not a phrase that I'm familiar with.LOL
Is that something like 'let sleeping dogs lie'?
Thanks, Debbie
Posted: Wed Mar 04, 2009 12:41 pm Post Subject:
Because this guy was such a jerk about me asking why it had to go toward the loan, I want to find out if he was being shady.
I guess there are chances that this gentleman (the loan officer) was not convinced of the premium thing over the phone. This is one good reason why I wouldn't rely on telephonic conversation. I'd still look forward to a way that gets things in shape for you..Please keep in touch!
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