Legal Question in Consumer Law in California

Back Dating CPI Insurance

Due to an error by my agent in reading a VIN number off of my loan documents the parent company did not recognize the addition of a car I bought. It was corrected and the policy issued from the date of correction. Nothing happened to the car during the problem period. My loan company then purchased a CPI policy on 2/20/2009 for the period 10/29/2008 to 1/20/2009, the period in which there was the VIN number problem claiming I had no protection for their collateral. Can the loan company purchase (and of course bill me) for this worthless back dated policy? Any claim against that policy would be considered fraud since it was purchased after the period of coverge and so it didn't protect anyone. My insurance agent says I was indeed covered during that period, they just didn't bill me for their error (and backdate the policy) and so the stated dates of coverage. I do have an email to my agent, with the hard to read VIN number on the attached load docs, requesting that the car be added to my existing policy. The same email CC'd my loan company.


Asked on 3/04/09, 2:49 pm

1 Answer from Attorneys
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Back Dating CPI Insurance

If you explain (and prove) to your loan company that you had coverage, they will probably waive the charges. After all, whoever they purchased the insurance from will probably refund their money.

A client had a similar experience and Wells Fargo was great about it.

Bottom line is, you were obligated to have the car covered by insurance. If you did have the car covered by insurance (temporary misunderstandings not relevant), you performed as required. It might be helpful to read the relevant language from your conract.

Before anything else, try to politely explain that the vehicle was covered during all relevant times.

Ultimately, if they refuse to waive the "charges," I would probably refuse to pay them. That could impact your credit report (even such a report by the loan company would be illegal or improper) so consider such a decision carefully. You might want to be proactive and tell them you're refusing to pay and tell them that they have no basis for deeming such non-payment as a delinquency.

Good luck and get REAL advice from a lawyer who FULLY understands the facts of your situation before making any decision.

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Answered on 3/04/09, 3:32 pm


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