Legal Question in Banking Law in Georgia

Lien Holder wants additional payments after ins co's paid

A vehicle I owned was totaled in an accident well before the payment that month was due. Primary Ins Co called Lienhldr to get payoff but was given ''agreed upon'' amount, not the payoff amount. Agreed amount was over $2000 less than what the payoff amount would've been. I also have Gap insurance on this vehicle. Gap Ins Co was given a totally different amount, they were given the ''actual payoff amount'' by lienholder. Lienholder says I still owe the payment for the month the car was wrecked in, which happened 2 weeks prior to when the payment was due, and owe for the next months payment. This is after they have received the primary insurance company payment and have been notified of the Gap payment and its amount. My question is, can they do this and do I have to pay these 2 months worth of payments and interest? I thought they would have to give the primary insurance company and Gap company the same payoff amount, so everything would be taken care of. I'm not understanding why I'm having to make payments for a car that I know is in a salvage yard now.


Asked on 5/04/07, 1:09 pm

1 Answer from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Lien Holder wants additional payments after ins co's paid

You owe the amount as determined by your loan documents, not the value of the car. If your car was worth less than the loan balance, the insurance company has no obligation to pay more than the value of your car just because you owed more than that (except in the unlikely scenario the insurance agreements says otherwise). Perhaps this answers your question about why you may still be paying for a car in the salvage yard. Beyond that, read all the documents - the loan docs, and all insurance contracts - to try to figure out what you may, or may not, owe. Get with the lender and go over the numbers to make sure they are correct, make sure the insurers are paying what they should pay, and then you probably owe what is left.

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Answered on 5/04/07, 1:18 pm


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