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Spent money intendened to pay for car repair?

I was in a major accident and it was the other drivers fault. The other drivers insurance company contacted me and asked me what place I would like to get my car repaired at. I told them the repair shop. It took a while for the car to be repaired and little by little I would take money out of the money that was to be used to pay the repair shop. ( The check was issued to me but to pay the repair shop, but only my name on the check). The car is being financed. Now the car is finished and I dont have the money to pay for the repair. The repair shop is calling the insurance company telling them I havent paid for the repair, and the repair shop is threatening to put a lein on the car. What can the insurance company do to me and what can the car repair do to me. I still have a large portion of the money I need to pay them but they wont accept anything less than all of the money which I do not have. What can happen to me legally and financially.

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6 Responses to “Spent money intendened to pay for car repair?”

  1. diamondlil said :

    The repair shop can put a lein on your car and not release it until you pay the bill. The repair shop is not going to give you the car until the pay the bill in full either by cash, check, or credit card payment. That is why the check should never be given to the person if there is a loan on the car. You may also have a legal problem with the loan company, as the check was not yours to spend.

  2. longleggedfirecracker said :

    Well, important lesson learned!! You should have turned over that money the first minute it came near your hands.
    Too late now…ask them. You should try to find some overtime work or another job quick instead of typing on this page. You have to make things right, and hopefully learn from your BIG mistake.

  3. la428282 said :

    Well, the insurance company has wiped there hands clean… they paid for your repairs and they are done. so they arent going to do anything to you (obviously they will be taking their rental back if you have one). The shop on the other hand will obviously keep your vehicle until you pay. and they will likely start charging you outrageous storage charges as well for every day they keep it (probably around 30.00 per day)

  4. Lance R said :

    The repair shop can legally put a lien on the car. Not only that, but they can also charge storage fee till the bill is paid.
    The insurance company did their part, they’re out of it now.

  5. Chris said :

    The repair shop can do exactly what they have done. The insurance company was right to just pay you. They have no obligation if they don’t insure you to make sure you get the car fixed. Now, if you had used your own policy since you have a lienholder your insurance company would have had to make the check out to you and your shop or lienholder jointly.

    If you were to get the car back unrepaired (which didn’t happen here from what I’m reading) and your car got repossessed your lienholder would make a claim for the damage against your insurance and then they might go after you if you actually did already get paid for this. But based on the details you gave, you’ll have a lien against your vehicle and you won’t get it back until you pay for the damages.

    Why would you spend that money?

  6. CowboyBill said :

    Dude, the insurance company is DONE with you. The bodyshop, however, is about to take your car and sell it for the cost of repairs.


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