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PostPosted: Mon Apr 11, 2011 9:13 pm   Post subject: Lienholder-Santander  

I was in an accident when it was icing and snowing on the road and damaged my vehicle. I received a check that was written out to me and my lienholder. I sent the check to the lienholder for endorsement and I did not sign the check before sending. They have kept the check so long, we had to pay the shop out of pocket. Since they have had the check for almost a month, my car payment was just due and now they are saying they will not send the check unless I make a payment or they will cash the check and apply part of it towards my payment and send me the remaining amount. Can they cash the check without me endorsing it???? And is this legal for them to hold my insurance check until i make a payment???

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PostPosted: Tue Apr 12, 2011 1:54 am   Post subject:   

. Can they cash the check without me endorsing it?
Not the check they have... but they could send it back to the insurance company. Your insurance company still should not send out a check without your name on it. Call the lien holder and ask you understood that they will cash the check without your signature. If they say yes, ask them how they feel about committing fraud.

And is this legal for them to hold my insurance check until i make a payment???
Well, the check is useless unless they sign it so what is the difference. I think you see their point... they _will_ take the car back if you don't make a payment and they certainly don't want you to keep any repair money if _their_ car is not repaired.

As an adjuster I'd not issue payment without the insureds name on the check. The contract (policy) states that the insured will be paid. The laws states that the lien holder needs to be protected. A two party check does this. I don't get into the legality of who gets what money... I just send the check out with two names and be done with it. If one person claims that they check was cashed without their endorsement I send them the banks paperwork to claim fraud and the bank looks into the matter.

If you've paid for the repairs to the vehicle and the bank want to now apply the repair money toward your payment then why not let them do this? You owe the money to them anyway. They can pay you any difference. Problem solved.
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PostPosted: Tue Apr 12, 2011 11:35 am   Post subject:   

Yes, they can repay the difference of what they got from it and what you actually owe. So, accept their offer if you wish to pay them. But when it comes to the question of honesty they probably can't cash it out without your signature.

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