Auto finance company and gap ins in conflict?

Car was totalled in June of this year. I have full coverage and gap insurance. I took all necessary reports and documents to Nationwide, who paid what the car was worth. That left me with 1500 remaining on the loan balance. Gap sent a letter saying they would pay but my finance company said they haven’t. In addition, I’m now being charged late fees for that 1500 remainder. Help I feel like I’m getting the run around from someone and I don’t know how to find out who is at fault here.

Asked on October 12, 2017 under Accident Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Ask the insurer to send you proof that they paid the financing company; if they do not do so or keep insisting that they "will" pay in the future, inform them that you will sue them for breach of contract if necessary for all amounts you owe (including late fees, interest, etc.) due to their failure to honor their contractual obligations. (The GAP policy you purchased, like all insurance policies, is a contract, and is enforceable in court.) If they still don't pay and provide proof of payment, then file a lawsuit; in the lawsuit, ask for punitive damages too, for their willful and wrongful failure to obide by their obligations. (You probably won't get the punitive damages--courts rarely give them in contractual cases--but on the other hand, you will definitely not get them if you don't ask; you may as well therefore ask, on the chance you will get the extra money.)
If they do provide proof of payment, keeping a copy for yourself, send proof to the financing company, sent some way you can prove delivery.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.