Community Forums

BirchyBoy · 10-29-2018, 09:46 AM

My cousin had his motorhome damaged in a hail storm, totaling about $13k. Progressive made the check out to him and the bank that has the lien. When he went to have the check endorsed at the back for deposit, the only option they gave him was to apply it to the loan. He asked the teller to check with the branch manager and the person confirmed that that was how they did it. They told him he could keep up to 4K for repairs but that was it.

That doesn’t seem right to me. He is now left with an RV that needs repair and has to pay out of pocket for the majority. Has anyone else had this experience?

Mr_D · 10-29-2018, 09:50 AM

Ins co should have made the check out to the owner and repair shop. That's hiw any repair I've ever had was handled.

BobGed · 10-29-2018, 10:01 AM

The bank as the lien holder is also an owner so I don't think the insurance company did anything wrong.

However IMO the bank did as they should have made the entire settlement available to make the necessary repairs even if they insisted on disbursing the funds directly to the individual repair facilities.

D&D Young · 10-29-2018, 10:13 AM

That should only occurre if the unit was totalled and obviously it was not. Check should have been written to him and the repair shop not the bank. What did the insurance company say about the way they wrote it. I hope he didn't cash it yet.

scbwr · 10-29-2018, 10:43 AM

I just had to file a claim on our MH that I have a loan on from a bank. The check from the insurance company is made out to my DW and me and the repair facility.

It just doesn't seem right that the bank would take the funds unless the account is delinquent. And even then, you would only think the bank would require funds to get the account up to date. But...just my logic and 2 cents worth.

I'd suggest the rv owner have a meeting with the the loan manager or bank president and pursue getting an adjustment made. He should also check to see if the action taken is legal in the state of Colorado (assuming the bank is in Colorado).

BirchyBoy · 10-29-2018, 10:59 AM

Thanks everyone. He did deposit the check while there. He said that he would follow up as needed and then figure out what he was going to do. He has someone ready to repair the most necessary damage now.

dons2346 · 10-30-2018, 04:23 PM

Well, if he cashed the check, he is probably SOL. The check should have been written to him and the repair facility, not the bank.

I would be inclined to tell the bank to come pick up their damaged motorhome and when it was repaired, return it to me or they could keep it.

MadDawg · 11-08-2018, 06:43 PM

IMO you should check your insurance policy and your loan agreement. Establish who is the policy holder and what is stated in the loan agreement and go from there. I know my insurance carrier only pays the policy holder.
If the insurance company made a mistake in paying the wrong entity, then you may have want to file a complaint with your State insurance commission, if you don't get satisfaction from your insurance carrier.

Hope you are successful.

Jmac00 · 11-08-2018, 07:54 PM

what he should have done, is send the check back to Progressive and demand they make out the check properly, to the policy owner and the repair shop.

I just had my truck repaired from a minor collision, $4800 dent. Nationwide sent me a check within 24 hours of the report, my collision shop went to work right away, I took a check for $4300 ($500 deductible) to the shop and they just put it in my folder, they don't deposit it until the truck is complete.

Just send it back and ask for a new check as the repair shop wants to get paid too

TonyMac · 11-08-2018, 08:08 PM

Was the vehicle totalled? If so, the check is made out to the lien holder and the owner. If not, the check is made out to the owner. Some shops want to be included on the check to protect their investment in the repair, but this is not required. The insurance policy is with the policy holder(s), no one else. The bank IS NOT an owner, they can't come over and take it for the weekend, like a partnership. They are a lien holder, and as such, have different rights, all stated exclusively in the loan contract.

Bamaman · 11-11-2018, 08:57 PM

Insurance companies often put the check in the name of the insured and the lienholder.

The bank/finance company's only concern is that the repairs are made. Usually that would require a bank employee inspecting the repairs prior to signing off on the check.

If the bank is unable to do the inspection, maybe they could get the repair shop to transmit before and after pictures showing the repairs have been made. Then they should be willing to endorse the check.

Never should a bank demand funds intended to recondition their repairs go to the principal balance on the loan. That's not realistic.