Q: Insurance paid first lienholder, not second; what should I do?
My car was totaled in an accident caused by another driver, and it had two lienholders on the title. The first lienholder was paid by the other driver's insurance company, but instead of paying the secondary lienholder, the insurance company sent the money directly to me. I used the funds to replace the car and have continued making payments to the secondary lienholder. Now, the insurance company is asking for a lien release and claims they were unaware of the second lienholder, although both were listed on the title. They are saying they may have to pay the secondary lienholder and then seek repayment from me. I have no plans to default on my loan to the second lienholder. What should I do in this situation?
A: Contact the second lienholder and see if continued payments are acceptable. In any event, you are solely liable to the second lienholder as you used their secured funds to purchase the new automobile.
Justia Ask A Lawyer is a forum for consumers to get free 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 Justia and you, or between any attorney who receives your information or responds to your questions and you, 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.
