Can lien holder keep my check

by jasjandrews2 » Sun Dec 13, 2009 09:49 pm

i was in a no fault accident, but the other party did not have insurance. My insurance company issued me a check less my deductible. the check has my name and the lien holder name on it. The lien holder told me i must give them the check to hold until i decide to get the car fix at a later time. I don't plan on getting the car fix as the damages is minor and can be hidden by a car covering. Are they able to keep my check?

Total Comments: 8

Posted: Sun Dec 13, 2009 11:12 pm Post Subject:

They will if you don't plan on fixing the vehicle, however in most cases they will not sign it over to unless the vehicle is repaired, or there is enough equity in the vehicle to cover the check. It also may depend on your state's laws, in which the law protects the bank. Are you behind on payments?

Posted: Mon Dec 14, 2009 01:58 pm Post Subject:

what do you mean by equity in the vehicle to cover the check? I have had the vehicle for 2 1/2 years and only been late once in 2008 due to a banking error. Can i chose to have the check applied as car payments?

Posted: Mon Dec 14, 2009 02:06 pm Post Subject:

You obtained money from the lien holder with the vehicle being used as collateral. Meaning the vehicle secures the loan. The LH has every right to protect that collateral and to make sure that the value in it is maintained. This is why they are requiring that the vehicle be repaired. If you default on the loan they don't want to pick up a pile of junk. These are the terms of your agreement.

Posted: Mon Dec 14, 2009 06:17 pm Post Subject:

.

jasjandrews2,

If your Loan is with an local Bank etc. :) you could make an appointment with the appropriate person to look at your automobile and the damage and then discuss how best to apply YOUR claim settlement check in a way that Helps all involved without harming anyone involved.

If your Loan is NOT with an local Bank etc. you likely won't have that option. :(

Posted: Tue Dec 15, 2009 12:16 am Post Subject: check

(My '2 cents', too) This past summer, I was in an accident. The person, who rear-ended me, 'totaled' my Jeep. My Jeep was being financed, so, it was collateral for the loan. When I received the money for my Jeep (the 'Blue Book' value), the check went to the finance company. Hope this 'personal experience' helps a bit.

Posted: Tue Dec 15, 2009 12:31 am Post Subject:

the check went to the finance company. Hope this 'personal experience' helps a bit.



The at-fault party's carrier sent the check to your bank? How did they know you had the vehicle on loan? I always (when I have draft authority) write the check in the name of the claimant. I never ask or have been requested to find out if the vehicle is being financed. Of course this is only has been the case in MO,KS, and OK. I'm sure it's different, but how would they have recieved that info?

Posted: Tue Dec 15, 2009 12:52 pm Post Subject: check

Well......the other driver's Insurance ajuster came out to look at my car. I had my mechanic look at it, too. The adjuster said the car was 'totaled'. He asked if I had the Title to the car. i told him I had a 'pink slip' because the Fianance Co. had the Title. I still had an 'outstanding' loan, concerning the Jeep. So, since the Finance Co still 'owned' the Jeep, the OTHER Insurance Co (Progressive) sent the check to the Finance Co.

Posted: Fri Dec 16, 2011 06:07 pm Post Subject: insurance

(Just my '2 cents' here) A few weeks ago I hit a deer..yuk!! A few days after I had an estimate done, my Insurance company sent a check for repairs. I'm pretty happy with who I deal with!! They handle claims professionally, etc. And I think their rates are really reasonable. :)

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