by Kimberly.Kirby » Mon Jan 25, 2010 03:04 pm
I live in FL, and my brother in-law was recently in a minor car accident. They filed a claim with their own insurance company and a check for the damages was issued in theirs and the lien-holders ( a Buy -Here Pay-Here) names . The check was then mailed directly to the lien holder, who is refusing to sign it over until after the repairs are made, or if ( My sister's husband is a car tinker and has mechanic friends) they want to fix it themselves after proof of purchase for the new parts he will then sign the check and "possibly" give them the money (if any ) that's left over... Is this legal ? I thought that you were to have the check endorsed by the lien holder and then yourself / other members listed on the check, deposit the check and then begin to make the repairs.. expecting people to pay first when there is costly damages to a vehicle is insane, a few hundred dollars maybe , but 1k+ is a little extreme in my opinion. I just think the lien holder is trying to make some extra money off this thing, and personally if there's any money left shouldn't it go to the owner of the insurance policy for depreciation or back to the Insurance company?
Posted: Mon Jan 25, 2010 04:06 pm Post Subject:
If the lien holder were to endorse and hand the check over before the repairs were done many people would never have the lien holders vehicle repaired.
The easy way to take care of this is to have a body shop repair the vehicle, have the BS confirm that the vehicle was repaired or is about done and then the lien holder can endorse and hand over the payment. This can probably be done right as the vehicle is done being repaired so that there is no delay and you only need to come up with your deductible.
The lien holder is not trying to make money... they are only trying to protect their interest in making sure the vehicle is repaired.
Posted: Mon Jan 25, 2010 10:27 pm Post Subject:
who is refusing to sign it over until after the repairs are made
geeze do ya' really blame 'em? They actually own the vehicle...not sis...So let's say the endorce it...sis blows the money, then defaults on the note...they re-pop it...now it's got damage...they can't resell it..they call the ins company and turn in a claim...ins company says, 'welp, we paid them...oops, did we forget to protect you Mr. Leinholder?' THEN... guess what happens, (and yes, I've seen this happen)..the insurance company has to pay the exact same claim AGAIN to the leinholder, because they neglected to protect them, per their policy contact...so that's why really...Now, I'm the first to agree that not all 'we tote the note' car lots have high business ethics...so could be something going on here...as well, but the fact is they are within their rights....as T said, have a shop fix it...the ins company will likely (if asked) stop pay on this draft and reissue one to your sis and a shop.
Let me ask you this..what is their payoff on this note? Can they pay it off with the ins. damage payment?
Posted: Tue Jan 26, 2010 06:18 am Post Subject: Check Endorsement
It is only obvious that the lien holder has agreed to endorse the check only after the repairs are made. But that is not a problem. You simply need to go to a body shop, get the car repaired and send the proofs to the lien holder. He will then hand over the check to you.
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