Can a lienholder decline to pay a mechanic?

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Can a lienholder decline to pay a mechanic?

I was in a car accident and my insurance company made the check payable to my lienholder and myself. My lienholder is refusing to release the check to the mechanic so that I can pick the car up. It almost been a month of us going back and forth. Can they do that?

Asked on March 13, 2012 under Accident Law, New York

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

A lien holder can refuse to pay a mechanic for the car that a repair check has been issued for. However, in the situation that you have written about, unless the car payments owed the lien holder are in arrears, it does not seem right for him or her to refuse to pay the mechanic who repaired the vehicle.

I suggest that you consult further with an attorney that practices in the area of auto repair law and lien law.


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