bank no longer exist

by Guest » Wed Oct 29, 2008 08:44 am
Guest

I was in a car accident that was deemed not my fault. The insurance company for the other party wanted to send me a check for the damages(totalled my car) but they say my car is technically still owned by the bank but it isn't. My car is paid off but I never got the title because the bank whent out of business and was bought by another bank that got into federal trouble and now no longer exist. The insurance company said they still have to make it out to the bank listed on the title and me. However, because the bank no longer exist I can not cash the check, neither my bank nor any other will honor the check. What do I do?

Total Comments: 3

Posted: Wed Oct 29, 2008 09:26 am Post Subject:

The insurance company said they still have to make it out to the bank listed on the title and me.

Of course they have to include them on the draft, sorry but it's your responsiblity to prove this lein is released...why did you let it go so long? what if you wanted to sell or trade this car? you wouldn't have been able to...contact whomever governs this lending institution in your state, see if they can help...who is the lender?

Posted: Wed Oct 29, 2008 09:45 am Post Subject:

I'll echo lori, the responsibility lies upon you to get the release of the title once the loan is paid -off from the financing company. This not only will create problem in encashing the insurance claim check, but will also hinder any selling process in the future.

The insurance company needs a clear title on the car and therefore has to include the lien holder on the check since the title still lies with them. Check with the dealer, he may be able to offer some idea about the whereabouts of the financier.

Posted: Wed Oct 29, 2008 01:57 pm Post Subject:

Another person posted a thread on this same subject. From what I recall, that insurance company agreed to perform a due diligent search and then, once the bank did not respond, make the check payable to the claimant. I'm guessing if the insurance company won't do this, you could and then provide that documentation to the insurance company. Don't ask me what needs to be done, I don't know. I'm guessing you could find out this info from a google search and then talk to the carrier about it. Also, you might speak with the DMV to find out what they would need to have in order to remove the banks name from the title. Perhaps if you could provide the DMV proof that you paid off the lien, they would remove the banks name.

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