Car loan company refuses to issue a refund for an overpayment?

Get Legal Help Today

 Secured with SHA-256 Encryption

Car loan company refuses to issue a refund for an overpayment?

My girlfriend was in an accident which totalled her car. The other person’s

insurance company issued a check that paid all but $867. The dealership

issued a refund check of $1190 for unused maintenance packages. The finance company applied $867 of that to the unpaid portion of the loan and issued a check of $323 to my girlfriend. About a week later, the insurance company that held the GAP insurance on the car issued a refund check for $781 because it was not used. Now the finance company refuses to refund that money to my girlfriend that is her money. What can we do?

Asked on June 11, 2018 under Accident Law, Rhode Island

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Your girlfriend can sue them: that is what she can do. When there is overpayment or someone is paid twice (or from two sources) for the same thing, they cannot keep the overpayment--the law is very clear on that. An error--like overpaying--does not let you keep money to which you are not otherwise entitled or to be double paid for something. Legally, they have to return the overpayment; if they won't, as stated, they can be sued. Whether it is worthwhile suing for $781 is a different story, however; unless the insurer is headquartered in the same county in which your girlfriend lives, she'd most likely have to sue in "regular" court, not small claims court (small claims is a court of "limited jurisdiction" and only has power over defendants within its county), and suing in regular court may be more trouble, time, effort, etc. than it is worth.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption