by Erguitarlver » Mon May 21, 2012 12:20 am
I had full coverage and gap ins on my car, i was not at fault for the accident and it was totaled, but the gap ins never paid! I bought it through citifinancial auto who were then bought out by a company called santander i believe...i tried to contact them and thy have no idea what i am talking about. Now there is a " charge off" on my credit report which has negatively impacted my score! What can/should i do if anything?
Posted: Tue May 22, 2012 01:15 pm Post Subject:
i was not at fault for the accident and it was totaled, but the gap ins never paid!
Did any other insurance pay some or all of the claim for the damage to the vehicle? You don't tell us when this happened -- 1 year ago, 10 years ago? It makes a difference, you know.
Citifinancial is now known as OneMain Financial. Santander is a different company. It is possible that Citifinancial sold your note at some point in time to Santander. But they are not the same companies.
You claim the GAP coverage did not pay. Did you ever file a claim for that portion of your loss? They don't pay unless you file a claim. It's your responsibility to file a claim, not your lender's.
Do you still have the paperwork showing you had paid for GAP coverage at the time? If you do, you take that to whomever is claiming you owe money and tell them to collect it from the insurance company. It would also be a good idea to file a claim with the insurance company on your own, too.
You should have disputed the attempt to collect the debt a long time ago. Now you have a bigger problem on your hands, and it may require hiring an attorney to assist you. DON'T WASTE YOUR MONEY on so-called "credit repair" services -- they can't really do more than you can on your own, and you can do it at no cost.
You might also consider filing a complaint with your state's Dept of insurance if you filed a claim but it was never paid. They may be able to help.
Posted: Wed May 23, 2012 02:51 am Post Subject:
This problem is becoming more and more common. As the car loan is transferred from one financial institution to another over time, many aspects of the original agreement become lost in the shuffle. Still other problems are created by the sheer fact that non-insurers (i.e. car manufacturers, lending institutions, dealers) are essentially selling insurance policies such as gap insurance, roadside assistance, and various types of warranties without any accountability to regulatory entities such as the state department of insurance.
In this case, it sounds as if the original financing and purchase agreement conatined a gap insurance provision. You need to find a copy of your original loan paperwork that reflects the existence of the gap insurance. You need the version that you signed, not a reproduced copy from the present financial institution. Your insurance carrier might be a good starting point, sometimes they maintain records of lienholder documents. Other sources might be the dealer, title company, of department of transportation. If you are able to establish the existence of the gap policy and the wrongful denial of your claim you may have a number of legal remedies available including suing for bad faith, breach of contract, and breach of warranty. I would consult with an attorney in your area.
Posted: Wed May 23, 2012 03:59 am Post Subject:
selling insurance policies such as gap insurance, roadside assistance, and various types of warranties without any accountability to regulatory entities such as the state department of insurance.
Not all states take such a lazy approach as this. CA is one that requires a P&C insurance license to transact all of these coverages.
You need to find a copy of your original loan paperwork that reflects the existence of the gap insurance.
One more good reason to obtain GAP coverage inside one's own personal auto policy rather than a standalone product.
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