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What would happen if you was to cash a check, didn’t realize it was to you and your finance company, take it to a local business that has a money center, they cash the check without even having you sign let alone having the finance companies endorsement on it?

The money cleared my account like a couple months ago and it was just brought up now. I don’t want to get into huge trouble or anything but like I said the business didn’t even have me sign and I don’t know what the crap I’m doing with this stuff.

  • (1) What was the original purpose of the check? (2) Tell the finance company to complain to the check cashing company. – RonJohn Nov 16 '17 at 17:33
  • I filed a claim so insurance company put my name and the finance company name . – Holly Nov 16 '17 at 17:35
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    Yes ! I got it fixed – Holly Nov 16 '17 at 17:40
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    "and it was just brought up now" Did you tell the finance company that you used the money to repair the car? If so, what was their response? – RonJohn Nov 16 '17 at 18:37
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    Did you tell the finance company that you used the money to repair the car and show them the receipts? If so, what was their response? – chili555 Nov 16 '17 at 21:34
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What would happen if you was to cash a check, didn’t realize it was to you and your finance company, take it to a local business that has a money center, they cash the check without even having you sign let alone having the finance companies endorsement on it . The money cleared my account like a couple months ago and it was just brought up now .. ?

The reason why the check was made out the owner and the lender is to make sure the repairs were done on the car. The lender wants to make sure that their investment is protected.

For example: you get a six year loan on a new car. In the second year you get hit by another driver. The damage estimate is $1,000, and you decide it doesn't look that bad, so you decide to skip the repair and spend the money on paying off debts. What you don't know is that if they had done the repair they would have found hidden damage and the repair would have cost $3,000 and would have been covered by the other persons insurance. Jump ahead 2 years, the rust from the skipped repair causes other issues. Now it will cost $5,000 to fix. The insurance won't cover it, and now a car with an outstanding loan balance of $4,000 and a value of $10,000 if the damage didn't exist needs $5,000 to fix.

The lender wants the repairs done. They would have not signed the check before seeing the proof the repairs were done to their satisfaction.

But because the check was cashed without their involvement they will be looking for a detailed receipt showing that all the work was done. They may require that the repair be done at a certified repair shop with manufacturer parts. If you don't have a detailed bill ask the repair shop for a copy of the original one.

  • "They would have not signed the check before seeing the proof the repairs were done to their satisfaction." That's really odd, since the whole point of an insurance check is using it to repair the vehicle. – RonJohn Nov 17 '17 at 14:40
  • The money wasn't sent directly to the repair shop. So the lender has to protect their investment. Yes doing it this way does make paying for the repair more difficult, but if the lender had been involved with process this could have been managed by them. – mhoran_psprep Nov 17 '17 at 15:06
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There are at least three financial institutions involved here: your insurance company's bank, the money center, and your bank. Normally, they would keep records, but given that the money center didn't even ask for your signature, "normal" probably doesn't apply to them. Still, you can still ask them what records they have, in addition to the other two institutions; the company's bank and your bank likely have copies of the check.

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