QUESTION
My lien holder won't endorse my insurance claim check
Asked on Oct 23rd, 2016 on Consumer Law - Florida
More details to this question:
In April, my car was involved in the bad hail storm, here in Texas. Just sitting in the driveway and it's attacked. My insurance company did their job, they issued a check for the damage but with both my name and the lien holder's name. It's only hail damage and I'd rather use this for the medical bills I'm accumulating. Finding out there is a tumor in my liver requires multiple doctor's visits, tests and removal. An upfront "No" lead to a BBB complaint. GoFinancial still said no because it is in the contract I signed. I asked for a copy of the contract and read through it thoroughly. No where does it say anything about if an insurance check has their name on it, they won't endorse it to the driver. So I think at this point I need a lawyer but what type of lawyer would I use? Who do I call?
1 ANSWER
Commercial Litigation Attorney serving St. Petersburg, FL
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Law Office of Guy P. Coburn
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When your vehicle is financed, the lienholder usually requires that you maintain insurance on the vehicle to protect the value of the vehicle. That's because, if you don't pay, the lienholder must try to get paid back by taking the car and selling it for whatever it is worth in a "commercially reasonable sale." (Usually that price is a small fraction of the amount owed on the car or its retail value).You indicated that your vehicle sustained hail damage, but you want to use the money from insurance for medical bills rather than repairs to the car. However, the lienholder has the right to demand that the money be used to repair the car, so the car regains its value before the damage. If the money is not used to repair the car, the lienholder has the first right to the money until the lien is paid off.So, from what you have said, it appears that the lienholder is RIGHT to refuse to endorse the check. If you do not use the money to repair the car, then the lienholder has the right to the money, not you.
Answered on Oct 24th, 2016 at 9:32 AM