Lafayette, LA asked in Car Accidents, Civil Rights and Insurance Bad Faith for Louisiana

Q: I had a car that was wrecked and paid by insurance. I got a letter that said stop payments. Put it in my name gotsued

Has a car accident, insurance paid. Got a letter from sf that said do not make anymore payments. Put it in my name. I owned the car. 2 months later i got a letter that said i had about 5 days left to pay the full balance left on the car because the insurance company changed something. Sf sued me and was awarded the judgement, mainly because i was mentally and financially unable to go to court. I instead emailed sf then forgot and assumed they would message me back to work something out but they just waited of course. AnywY, surely they had no right to sue me for my property correct? Or incorrect?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: Based on what you've described, there are several important legal considerations to unpack here. The key issue seems to be whether SF had the right to pursue legal action after telling you to stop payments and apparently transferring the title to your name.

Insurance companies can sometimes reverse decisions or change terms, but they need to provide proper notice and follow legal procedures. If you received the title and official documentation stating the car was yours, then SF would typically need to show valid reasons for demanding full payment later. The fact that you were unable to attend court unfortunately worked against you, as it meant you couldn't present your side of the story or challenge their claims.

Your best course of action now would be to gather all documentation - the letter telling you to stop payments, proof of insurance payout, title transfer papers, and the subsequent demand letter. You might want to consult with legal aid or bankruptcy attorney who could review these documents and potentially help challenge the judgment, especially if proper procedures weren't followed. Many offer free initial consultations to discuss your options.

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