by Frederick Street » Thu Aug 07, 2008 05:26 am
Hi, I have a used car lot.in PA. I Financed a car for a woman in MD. to make a long story short. she was in an accident in MD, other driver at fault. other driver insurance company wants to total car for damage. woman wants to retain ownership. I want to be paid off on my loan as car is legally a total loss. Woman says my payoff is wrong amount and disputes debt amount.insurance company( State Farm) claims MD law allows them to pay Woman without involving lienholder because car is over 7 years old, and they pay her without my permission. I cannot verify law but Woman owns her own insurance company and I suspect glad-handing supplication to business owner. oh and car is now behind on payments 2 months just like I thought it would.-Will
Posted: Thu Aug 07, 2008 07:59 am Post Subject:
Not sure if Maryland has some weird law against this, but in most cases the lien holder is definitely entitled to receive the dues.
Even if the owner wants to retain the car, she has to continue repaying the loan.
Posted: Thu Aug 07, 2008 09:29 am Post Subject:
Hey Frederick, why don't you investigate it with the Maryland department of insurance? I'm sure they have the answer.
I cannot verify law but Woman owns her own insurance company and I suspect glad-handing supplication to business owner.
What do you imply by this. Can you elucidate this part little more.
Posted: Thu Aug 07, 2008 09:47 am Post Subject:
Who is the owner of the car title? As long as you (lien holder) have the ownership on the car, the insurance company is bound to include your decision regarding the claim.
Generally, when a car with loan on it gets totaled, the insurance company writes the check either to both the parties (the lien holder and the claimant) or to the lien holder alone.
Posted: Thu Aug 07, 2008 10:21 am Post Subject:
Hi, I'm not too sure that I got your situation correctly..
But see, if the lady is a third party claimant in this case, then I believe the insurer may choose to pay the claimant directly (At-fault party's Insurer has no policy contract with this lady).
Under such 3rd party claims, it is normally seen that the at-fault party's carrier pays the claimant only & not her creditors. It is her job to make sure that you're not deceived of your money. So, its more likely that you may only pursue it with her!
..awaiting more of relevant responses..Fatman
Posted: Thu Aug 07, 2008 10:59 am Post Subject:
I have never heard of that...but since she is a third party and retaining salvage meaning they won't need the title, then I suppose it's possible, as mentioned contact the dept of ins for that state, also contact the adjuster and see if you can file a lein against this settlement.
Posted: Thu Aug 07, 2008 11:44 am Post Subject:
I _think_ the situation might be that MD does nto require the insurance company to change the title to a salvage title is the vehicle is 7 years or older. So they do not need the title in order to settle the total loss claim. But I highly doubt MD is any different from the handful of other states I've handled claims for, in that the insurance company still has a duty to protect the lien holder.
My recommendation is that you call this adjusters supervisor and confirm. You might even want to _tell_ them (nicely) that they have a duty to protect your interest and if they bring up that 7 year old thing... tell them you think this is not the case. You can ask them to fax you some info to prove their case. Again, I see no reason why the _age_ of a vehicle would for some reason negate the a law to protect a lienholder. This makes no sense to me.
But be warned... if SF is wrong about this, they may not want to admit to it as, if so, they would be required to make a double payment on the claim and then attempt recovery from their insured. For this reason, if you speak to them and they don't convince you that they are correct, I'd so as recommended and file a complaint with the DOI. DOI complaints are taken seriously by insurance companies.
Posted: Thu Aug 07, 2008 12:04 pm Post Subject:
But be warned... if SF is wrong about this, they may not want to admit to it as, if so, they would be required to make a double payment on the claim and then attempt recovery from their insured.
See though Todd it's a claimant not an insured...therefore they have no duty to protect the leinholder if they are not taking the salvage (and selling it)....other driver insurance company wants to total car for damage. woman wants to retain ownership
That's where I think he's gonna have trouble. Unless I've misread it...(which we all know I do on occasion :roll: )
Posted: Thu Aug 07, 2008 06:12 pm Post Subject:
See though Todd it's a claimant not an insured...therefore they have no duty to protect the lienholder if they are not taking the salvage (and selling it)
This time I have a good excuses for missing that one... I went from MST to EST and got up around 4am MST.I agree with Lori... if the person filed through the other person's carrier, that other carrier has no obligation to protect the lien holder.
_BUT_.... even though it appears they did not take the salvage, they cannot just walk away from any expenses associated with it's disposition. For example... if it's at a towing yard they need to satisfy those charges and move it to an appropriate location (sounds like the lien holders possession in this case).
OP, if the buyer is not paying on the car then you probably need to obtain a judgement against them and/or assign your right of recovery to a collection agency/attorney. I feel your pain.
Posted: Thu Aug 07, 2008 07:40 pm Post Subject:
In some States the lienholder is the legal owner and in other states the lienholder is not. If the lienholder is the legal owner then most insurance companies make certain to indemnify the legal owner first to avoid paying the claim twice. This is a legal matter best handled by an attorney. While you are at it you might want to close the loopholes in your contract that spells out what needs to be done in case of a loss. Remember that adjusters settle claims based on general principles of law. This is not written in stone as a court of law may find differently than your adjuster. When an insurance company says no, its usually just the begining not the end.
Posted: Thu Aug 07, 2008 08:53 pm Post Subject:
Another thought, for the future, (and I've seen this done)...is to make sure you are listed on all auto policys (course won't help on third party claims)...as both the lein holder, and additional interest party.
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