Last week my car was repoed. Just received a check from insurance for accident in May. Check is to body shop and myself can we cash it or not?
Total Comments: 3
Posted: Mon Aug 23, 2010 10:12 pm Post Subject:
Legally a check needs to be endorsed by all parties on the check in order to be cashed. The BS should not endorse the check unless they have done the work and they should not release the check unless they have been paid. I don't think either of these things have been done. A replacement check is needed and it needs to be issued to you and your lien holder. The insurance company would then wash their hands of it (as long as the check was eventually cashed) and it would be between you and your lien holder to settle.
Posted: Mon Aug 23, 2010 10:20 pm Post Subject: Repo and insurance
What if the BS has already endorsed and is cashed can we get in trouble?
Posted: Tue Aug 24, 2010 12:59 am Post Subject:
Was the work done by the body shop? If so, they they have a right to be paid. If not, then they should not have endorsed the check. If the damage existed on the vehicle when it was reposed then the lien holder would have a right to come after you for the cost to repair the vehicle in addition to what you owe and other fees as outlined in your loan agreement.
Posted: Mon Aug 23, 2010 10:12 pm Post Subject:
Legally a check needs to be endorsed by all parties on the check in order to be cashed. The BS should not endorse the check unless they have done the work and they should not release the check unless they have been paid. I don't think either of these things have been done. A replacement check is needed and it needs to be issued to you and your lien holder. The insurance company would then wash their hands of it (as long as the check was eventually cashed) and it would be between you and your lien holder to settle.
Posted: Mon Aug 23, 2010 10:20 pm Post Subject: Repo and insurance
What if the BS has already endorsed and is cashed can we get in trouble?
Posted: Tue Aug 24, 2010 12:59 am Post Subject:
Was the work done by the body shop? If so, they they have a right to be paid. If not, then they should not have endorsed the check. If the damage existed on the vehicle when it was reposed then the lien holder would have a right to come after you for the cost to repair the vehicle in addition to what you owe and other fees as outlined in your loan agreement.
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