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Company refuses to endorse chk. to get paid.

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RobTL

Junior Member
What is the name of your state (only U.S. law)? MA

A few months ago my hot water heater bit the dust and flooded the finished side of the basement. A restoration company came in and removed the water, carpet, baseboards etc. and set up driers that ran for about a week.

I received the check from the insurance company about two months later. The check was for $4,800; $2,800 was for the cleanup by the restoration company.

The issue I'm having is that the check needs to be endorsed by the mortgage company, the restoration company and myself. The mortgage company said once they receive the endorsed check and a copy of the invoice from the cleanup company they release the funds for the amount on the invoice so I could pay them. The restoration company won't endorse the check until it is endorsed by the mortgage company. I've asked the ins. co. to reissue two checks so I could pay each company directly but they refuse to do so.

The restoration company is now threatening to take me to small claims court to get their money. I suggested that they endorse the check, THEN if I don't pay them they should take me to court. By the time we'd end up in court the check wouldn't be valid to cash because it has to be done within 90 days. If I showed the judge the check with the restoration company's name on it which they refused to sign in order to get paid, it seems to me I'd be ok.

Any opinions on this one? Thanks in advance.
 


justalayman

Senior Member
So, either you or the mortgage company hand $2800 to the cleaning company in exchange for them endorsing the insurance check.
 

LdiJ

Senior Member
What is the name of your state (only U.S. law)? MA

A few months ago my hot water heater bit the dust and flooded the finished side of the basement. A restoration company came in and removed the water, carpet, baseboards etc. and set up driers that ran for about a week.

I received the check from the insurance company about two months later. The check was for $4,800; $2,800 was for the cleanup by the restoration company.

The issue I'm having is that the check needs to be endorsed by the mortgage company, the restoration company and myself. The mortgage company said once they receive the endorsed check and a copy of the invoice from the cleanup company they release the funds for the amount on the invoice so I could pay them. The restoration company won't endorse the check until it is endorsed by the mortgage company. I've asked the ins. co. to reissue two checks so I could pay each company directly but they refuse to do so.

The restoration company is now threatening to take me to small claims court to get their money. I suggested that they endorse the check, THEN if I don't pay them they should take me to court. By the time we'd end up in court the check wouldn't be valid to cash because it has to be done within 90 days. If I showed the judge the check with the restoration company's name on it which they refused to sign in order to get paid, it seems to me I'd be ok.

Any opinions on this one? Thanks in advance.
If it were to actually get to court yes, I think that the restoration company would get slammed for not cooperating with what was necessary to get paid. Surely they have dealt with insurance claims in the past and know what has to be done.
 

latigo

Senior Member
What is the name of your state (only U.S. law)? MA

A few months ago my hot water heater bit the dust and flooded the finished side of the basement. A restoration company came in and removed the water, carpet, baseboards etc. and set up driers that ran for about a week.

I received the check from the insurance company about two months later. The check was for $4,800; $2,800 was for the cleanup by the restoration company.

The issue I'm having is that the check needs to be endorsed by the mortgage company, the restoration company and myself. The mortgage company said once they receive the endorsed check and a copy of the invoice from the cleanup company they release the funds for the amount on the invoice so I could pay them. The restoration company won't endorse the check until it is endorsed by the mortgage company. I've asked the ins. co. to reissue two checks so I could pay each company directly but they refuse to do so.

The restoration company is now threatening to take me to small claims court to get their money. I suggested that they endorse the check, THEN if I don't pay them they should take me to court. By the time we'd end up in court the check wouldn't be valid to cash because it has to be done within 90 days. If I showed the judge the check with the restoration company's name on it which they refused to sign in order to get paid, it seems to me I'd be ok.

Any opinions on this one? Thanks in advance.
Any opinions on this one? Yes!

Call Consumer Services Commonwealth of Massachusetts Division of Insurance * consumer information line (877) 563-4467) or download and submit complaint form here:

www.docstoc.com/docs/40557271/Massachusetts_Division_of_Insurance

But do so before engaging the services of an attorney. Otherwise, the Division rules prevent it from intervening.

__________________________


[*] “Consumer Services responds to inquires and intervenes of behalf of consumers to resolves complaints against insurers, etc. . . . “
 

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