Question About Total Loss and Paying Off the Loan

[RTB]

Here's the deal:

I bought a car last November and have paid a little over $2,200 since then on a $13,000 loan.

The car was totaled last Sunday and insurance fully covered the car so they paid off the loan and cut me a check for the remainder of the value of the car.

The problem is the check they gave to the lien holder was over $13,000. Since I've paid over $2,200 already (and I realize that some of that is interest) shouldn't they have received less and I get more of the difference back?

Hope that makes sense. Anyone have to deal with this before?

 

[djs]

The insurance carrier simply asked the lender for a payoff statement, then wrote the check for that amount.

If the payoff amount was wrong, then clear this up with the bank and they will send you back (from the bank) the balance.

In short, the insurance company did what the bank told them to do. Any corrections have to be made through the bank directly, the insurance company doesn't resolve loan problems.

Dan

 

[briko3]

They probably looked at culative remaining payments and asked for that amount.

 

[djs]

My guess is, there were a LOT of fees tacked onto that loan that were not known about.

Tax, title, registration, warranty, document fees, etc. I can't tell you how many people mentally take the price of the car, minus their downpayment, and think that is the loan amount. Doesn't work that way. They even sign saying it doesn't work that way, but mentally, it happens that way.

Look at the original loan docs and see what the loan amount actually was. Sometimes banks make errors though, so it is well worth checking.


Dan

 

[RTB]

Right. I will check the fees. I also paid $4000 down at time of signing. Thanks for the replies so far.