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: Wed Aug 13, 2008 08:11 am Post Subject:
Hi Lori..
I'd like to have your opinion regarding some states considering the lien holder as the legal owner while the others would not!
As for the insurance companies, we don't have any problem till they are following the state guidelines. But what about the other states & why this difference after all...any reason that comes to your mind?
I'd look upon a lien holder as the person who'd have the right to acquire the property once a loan is not repaid. If thats the case, then how do things fall into place for such states!
Regards, Fatman
Posted: Wed Aug 13, 2008 09:39 am Post Subject:
I think all states react the same re: lien holders...the problem comes (like this thread) when it's a third party rather than first party claim...The insurance company has no obligation in third party claims to protect (or even know about) a lein holder, unless the vehicle is a total loss and the owner is relinquishing the salvage to the carrier, in which case a title changes hands...otherwise....poor lein holder...like our dear OP in this thread..
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