Pay-Off Agreement

[jalopy]

PayOff Agreement

I was the victim of a hit-and-run. My vehicle was totaled. My insurance provider contacted the company that carried my loan. The insurance provider and loan company reached a "payoff" agreement to satisfy the full loan amount. In return, the loan company signed over title to my insurance provider.

After the loan was satisfied, the loan company still wants to hold me liable for a payment. They want to charge me for the time between the "payoff" agreement was reached and the payment was submitted. The loan company already relinquished title to my insurance provider and accepted the payment.

Can the loan company still hold me liable for the extra payment?

 

[blue_wynd]

submitted? You mean when the insurance company send them that "pay off" check?

 

[VolAgent]

Loan payoffs have to be received in a timely manner due to daily interest charges. Typically I have seen that if you call and get the amount, it has to be received in 10 days. It sounds like the insurance company did not send the payment such that was received in time. Therefore the loan company wants the missing interest, and since you are the borrower, guess who they are looking at.

I'm not an attorney and I am not privy to the agreement signed by the insurance and loan companies. They may have waived the right to collect that interest or they may not have. Also, depending on what you signed with the insurance company, your obligation to pay may have transferred over to them or it may not have.

I would start by calling the lender and insurance company. See if you can get the lender to forgo the interest and/or if you can get the insurance company to pay the interest.