Remaining interest due after payoff letter?

[CAGuy25]

I live in ca. I was recently in an auto accident. The insurance company received a payoff letter from the finance company, they paid the finance company 4 days after the payoff letter was good for, accruing an estimate $3/day per the payoff letters estimated interest charge per day. Yet, for some reason the last time I spoke with the finance company they mentioned some past accrued interest and say that the final balance should be no more than $200. If they sent a payoff letter to my insurance company for a certain amount is it legal for them to say that I owe them even more after that was paid. I'm more than willing to pay them the $12 or $16 because the insurance company paid after the payoff date, but past that I think it's ridiculous. Thanks

 

[ProResearch]

CAguy,

I hesitate to answer anything for California, as the laws there seem so different than most states, but I'm sure I'll be corrected by other posters if I say ... er type something out of line! However, since this is a basic insurance question, I will state that you need (if I were you) to contact the insurance company and ask why can't they pay the *full* amount.

When I had *my* accident I chose to deal with my insurance company because I had collision coverage (and they in turn subrogated the at-fault insurance company for the amount paid on my claim and sent me back my deductible when the other company paid). Out of the monies paid was the balance on my loan. I received conflicting amounts from the bank and from my ins. agent. After all was said and done, the amount was still different (go figure!) than anything quote, but it was paid in full by the insurance company and the rest of the money was given to me. After the bank was paid they sent me a letter discharging me from my loan as paid in full, so I have a record of it, and they cannot come back later and say, you still owe $xxx.

Get a letter from your finance company discharging your loan as paid in full and call your insurance company to find out why they didn't pay the full amount. I bet there is just some mix-up in communication somewhere.

Good luck! let us know?

~Diane~