by Guest » Wed Jul 14, 2010 10:51 pm
We received the check from the insurance and it was in our name and the lien holder (the car dealer) & he refused to sign the check until he saw the work done on the truck…This is what he told me…”I will sign the check after the truck is repaired and only if the work is acceptable. I will then have to see the bill for the work on the truck..Whatever the difference is we have to split it both ways…In other words, if the insurance check was for $2000 and the repairs were $1500….we get $250 and he gets $250……IS THIS LEGAL????? We have kept up with the monthly payments & have been responsible enough to have full coverage….Do we really have to split it with him….& if we do, is this money his, or should it go towards the truck balance?
Posted: Wed Jul 14, 2010 11:19 pm Post Subject:
The money to repair the vehicle is yours to an extent, you don't own it. So the lein holder is protecting his investment to make sure that the vehicle is repaired. He has every right to inspect the vehicle and make sure the money was used to repair the vehicle. As far as splitting it, that may be left to your loan terms, but it is your money. Your insurer is required to protect the lein holder. Now in the case of where $1500 will repair the vehicle versus $2000, I would ask him to produce documentation where he has a right to half of what is left over. I just handled a case similar where a "buy here, pay here dealer" in Missouri thought they were entitled to what was left over, they thought it was an agreement between the vehicle owner and his insurer. The result was, the dealer had no right or contract to be entitled to additional money since the amount to repair was less than the insurance check and the owner kept the money.
Posted: Thu Jul 15, 2010 03:08 am Post Subject:
Wow... that is some piece of work! I'm guessing he's not applying the difference to your loan... he just wants to make a buck where he should not be.
Nope, that "excess" money is in NO WAY, his. He'd simply be making a profit for no reason. He has a right to protect his property... by making sure the repairs have been done but I'm betting no where in your loan agreement does it state he will profit from any damage to the vehicle.
I'm no attorney but I'd think this would be borderline extortion. You may want to mention this to him and see what he says.
Extortion: Extortion means demanding or obtaining property from another through the use of threats, coercion, or intimidation. This can include threats of physical harm or some form of blackmail such as threats to cause harm to one's reputation, livelihood, marriage etc.
Posted: Thu Jul 15, 2010 06:47 pm Post Subject: insurance
I would think the 'difference', of the check, should go to the 'consumer', NOT the lein holder. Now...here's my question: if the lein holder gives NO money back, then what can the 'consumer' do?
Posted: Thu Jul 15, 2010 07:19 pm Post Subject:
The OP should not be giving _anything_ to the lien holder. if the lien holder won't sign the check the the OP could go back to the insurance company and see if they can talk some sense into the LH (as the insurance company is burdened by having a open check outstanding) and/or file a civil suit in small claims court.
I'd go back to the insurance company is see of they would be willing to put the repair company and insured's name on the check. I'd not tell them about the issues with the lien holder (perhaps only that would be very difficult to have he lien holder endorse the check).
Posted: Thu Jul 15, 2010 07:20 pm Post Subject:
if the lein holder gives NO money back, then what can the 'consumer' do?
Not a whole lot, especially if the owner has been late with payments. Since I do work for some leinholders on loans that have defaulted, I am placed with the task of trying to find a repairer that will repair damages for sometimes peanuts in order to sell the vehicle.
Posted: Sat Jul 17, 2010 12:50 am Post Subject: insurance
Well.........I guess if consumers were late with payments, maybe I wouldn't blame the lein holders. However.....I don't think the OP said that (did she/he?). Anyway.....I'm sure it's difficult to trust consumers of they are late with payments, etc. It's almost like you have a 'credit' with the lein holder by making your payments on time. I don't think I would sign the check until the repairs were done, either. But...the splitting the money? NOPE. What a thing to ask.
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