Do I have to pay my lender the money from the insurance company after a total loss?
Question Details: My insurance company direct deposited me the money from a total loss do I have to pay that to my finance company. What are the legal consequences if I don't?
If you don't pay them they will sue you and win, getting an enforceable court judgment against you which will damage your credit and which they can use to garnish your wages or put a lien on any real estate you own, or to take money from your bank account. When you finance a car, you owe them the full amount on the agreement regardless of what happens to the car. If you don't pay them, you have violated the contract--the loan agreement is a contract--between you, so they can sue for breach of contract. Since there generally is no defense to your obligation to pay, they will win.