What to do if I crashed a vehicle and the car loan was in someone else's name?

Question Details: We got the claim and a check was written to the person whose name was on the loan and the auto shop I took the vehicle to to see how much damage there was. The auto shop wrote me a check and took the insurance check and put it in there bank. The person whose name was on the loan took the car back and tried to get i tfixed. They found out I already spent the money so she did all the right things to get a new insurance check for the vehicle. The first check was cancelled so the money was taken out of the autoshops account and now they are sueing me for the money. Can I dispute this at all?

Asked on 6/25/2013 under: Auto Accidents Wyoming

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MD, Member, California Bar / FreeAdvice Contributing Attorney Answered 6 years ago | Contributor

No you cannot dispute this because this is or could be considered insurance fraud. If you are not the borrower/ owner of the motor vehicle, you had no right to that check or to proceeds thereof. Further, the auto body shop could have any of its licenses revoked (if licensed by DMV) for providing you the proceeds when you are not the borrower on the loan. The proceeds are to cover damages and repair. If the person whose name was on the loan attempted to get a new insurane check. the correct thing to do was reverse the proceeds.

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