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 Posted: Mon Dec 07, 2009 8:52 pm Post subject: Lein holder won't apply insurance check to auto balance |
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I live in Texas. My truck had some damage from a hail storm. I received the insurance check (made out to me and my lien holder) and it's slightly more then what i owe on the vehicle by ~$100. My lien holder / finance company will not apply the check to the balance of the loan so i can pay off the vehicle.
Is this common, or legal? Is there anything I can do about it? I don't care about some hail dings in my truck would much rather just have it paid off. |
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samsonpablo
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Joined: 07 Dec 2009
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| Posted: Mon Dec 07, 2009 8:57 pm Post subject: |
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if they won't apply it to the loan, then I take it they are giving it to you? If thats the case, bank the check then go and make a payment directly to them.
I'm not sure on what the normal process is, but as far as I'm aware, it's normal for a claim settlement to go firstly to the lein holder. I'm guessing they don't want to discharge the loan because they are hoping you'll just keep paying it (and the interest) as normal and repair the truck.
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heidrek
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| Posted: Mon Dec 07, 2009 8:59 pm Post subject: |
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| They want me to get the truck fixed. So, no, they won't give me the money, nor will they apply it to the loan. |
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samsonpablo
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Joined: 07 Dec 2009
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| Posted: Tue Dec 08, 2009 7:27 pm Post subject: |
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I could be wrong, but what this Bank is doing just doesn't sound right. Its your vehicle, your vehicle insurance co. and your money.
Its my understanding that the Lien holder is added to the Check to protect them for being stuck with an abandoned worthless junk car. And your paying the Loan in full would certainly protect the Bank from being cheated.... which makes their behavior seem unreasonable.
I remember a few years ago when an consumer had a slightly different problem with their Bank.
In this case the consumer had the car repaired and sent the check to the Bank for them to sign it and return it so they could pay for the repairs and pick up their car.
Well to keep a long story short, the Bank deducted the amount of the "Past Due" payments on the car and sent them a Check for the balance.
The Banks action left the car owner way, way short and he was unable to get his badly needed car from the shop.
Being that it was the car owner's insurance company, it was suggested they contact that States Dept. of Banking and inquire if the Bank had a right to do that.
They were told that State's Rules say NO the Bank can not do that. So the State Banking guy requested some more information from the consumer and Called the offending Bank. Before the end of that Day this consumer had a check from the Bank for the full amount. ( IIRQ ) along with an apology from the bank.
I'd suggest that you contact the Texas Department of Banking at the Link below.
( http://www.banking.state.tx.us/dss/ccmain.htm )
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That's my 2¢ worth for now. ( maybe ± a couple ¢ ) 
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FK
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