Bonney Lake, WA asked in Insurance Defense, Personal Injury, Consumer Law and Contracts for Washington

Q: Bank kept over payment of insurance of $20,000. I paid over $25,000 for car, insurance paid $49,000 & value was $53,120.

In January of 2023, I totaled my 2021 Dodge Challenger which I purchased through Ally Bank September 20, 2020. I put $20,000 down as a down payment, traded in my older model,made 19 on time payments of $275.48 ($5,234.12) for a total of $25,234.12 in payments made towards the vehicle (not including trade valued at roughly $12,000)at the time of loss and the purchase price was $55,120.

In February, my insurance company at the time (Liberty Mutual) deemed the car a total loss and sent payment of over $49,000 to Ally Bank (Ally has since blocked my access to my statements from my account). In the middle of February, Ally Bank sent me a refund of $550.96. When I called them to ask where the remaining $20,000 was, they said it wasn't owed to me and they were keeping it.

I am positive this isn't legal, but I have no where to turn. Please help. Thank you

1 Lawyer Answer

A: Use the Justia Find a Lawyer tab and search for consumer lawyer and/or a collection lawyer in your area---call a few them and discuss the specifics of your case with them and then decide how to proceed. Good luck.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.