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Insurance Company paid registered owner instead of lienholder
The registered owner has full coverage -the insurance company sent the check to the REGISTERED OWNER for repairs then it was deemed a total loss to much damage has been done so there for a total loss then asked the REGISTERED OWNER for the title. Then the insurance company did title search and found out that there was a lien.
Now the insurance company wants the lien holder to accept the difference in value from the repair check originally sent to the registered owner. Did the insurance company handle this backwards? And what right now does the lien holder have?
They have no money, no vehicle and no payments from registered owner.
Answer to Insurance Company paid registered owner instead of lien holder
Well, lien holders have a duty to protect their collateral. If there is a properly placed lien, then your title cannot be release unless there is proper payment. Proper payment seems to be the value loan, not what the damages or the insurance company paid the registered owner.
It is industry standard that the insurance adjuster asks and gets proof of ownership before issuing payments. Why they did not follow procedure seems to be their problem.
At this point, you need to contact counsel and hold your ground. It is the insurance company who must go after their own insured and ask for the money back. However, you claim (most likely) under the policy is that you are a lien holder and your interest must be protected first.
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