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Lienholder holding insurance check hostage

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Junior Member
Hi I'm hoping someone can help me out.

I was involved in a car accident and got my car repaired at a local auto body shop. I had to subrogate so my insurance company sent me a check with my name on it as well as the lienholder of my car (M&T Credit). I signed it over to the auto body shop when I picked the car up.

The auto body shop sent the check to my lienholder to sign off on it as well. Now the lienholder has refused to send it back to the auto body shop because I was 10 days late on my car payment. I made the payment the other day and am waiting for it to show up online before they will hopefully send the check to the auto body shop.

The auto body shop has told me that this is illegal on their part and that if they do not send the check that they may be forced to file a lien on the car. They have been nice but the people at the lienholder have been rude to them and have even discussed the fact with them that I was late on my payment.

Can they do this? Also can I do anything about them violating my privacy as well?

Any help would be appreciated.

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