Can a repair shop hold a vehicle until the insurance check has cleared?

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Can a repair shop hold a vehicle until the insurance check has cleared?

We have an 18 wheeler that has been repaired after an accident and the repair shop is not releasing the truck because the insurance company made it out to them and the finance company.

Asked on April 23, 2013 under Business Law, Oklahoma

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The insurance company did a very bad thing. It should have made the check out to you and not to the finance company or the repair shop. Now, your finance company will need to endorse said check. Or you go back to your insurance company, explain what occurred, explain its negligence and have two checks drawn. One for your finance company and one for your repair shop If the repair shop is regulated by any agency in your state, you better quickly report that company for conversion.


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