You are here

"Forced claim" on car insurance by dealer?

Had a car with a lien on it, and had begun doing some work to it (within the rules of the lien holder and I's written/signed agreement.) I didn't finish, and had to get ready for my move. Some parts got lost within the move and could be anywhere from in my trailer to in the dumpster.

I asked the lien holder if I could find someone to take over the payments, if it would be okay with them. They agreed, so I put it on craigslist for someone to take over the payments. Found a guy right away anxious to come get the car "tomorrow". I had to slow him down and explain the condition of the car, and send him a bunch of pictures. He just kept saying he didn't care, it was fine, he wanted it. We set up a date to do the paperwork. After that, I pulled the car out of the barn and noted it needed tires and such, so i sent more pictures and let him know. Including I found some parts that he could use to work on the interior, and i'd throw them in the trunk. Again, fine, he just wants the car asap.

I thought for sure it was a scam. But he showed up at the mom and pop dealer and signed the paperwork, without even coming to look at the thing in person. I drove him back to the car which was at my house, he throws his plates on and drives away.

That day, and two more days following it, i keep getting emails how happy he is and thanks so much, and how honest i was about everything etc.

Today the lien holder calls. The guys complaining it needs tires, etc and won't pass state inspection. I ask why it's my problem, buyer beware, i detailed all of the needs the best of my knowledge, so it's his problem. Lien holder says "no, I promised him i would make sure the car would pass inspection."

Again, why is this my problem? the arrangements between the lien holder and the new buyer should not be my concern, that's between them. Before the paperwork was signed, he explained technically, I am selling the car to the lien holder for the amount left on the loan, and they are selling it to the new buyer. So technically, the lien holder purchased my vehicle without ever looking at it or asking questions of it's condition.

Dealer says I am to reimburse the dealership for whatever it needs to pass inspection, if I can't come up with cash, they are filing for a "forced claim" on my car insurance.

A) What is a forced claim?
B) Why am i responsible for the arrangements they made with the new buyer?
C) Can any other charges be pressed against me if I refuse to pay?

Remember, the vehicle did not get repo'd it was SOLD to the lien holder for the amount left on the loan, and they sold it to a new buyer whom I sent to them. Also, there were no regulations in the written signed agreement between the lien holder and I at the time I purchased the vehicle on the type of work that I did to the vehicle.

Share this with your friends
Talk to a Consumer Lawyer Today
Most offer FREE Consultations
Connect with The Forum
facebook google twitter linkedin