A signs up for B on Car Finance - B ins the Car but writes it Off - who gets the Ins Payout?

[merlin100]

Sorry about the title guys, but it's appropriate.

this is a real situation.

 

A signed an agreement for £19k + interest so B could get a car (idiot).

B became the registered keeper and insured the car in his name.

 

Six months into the agreement, B wrote the car off. Vehicle assessors have quoted £22k to repair it.

 

B rang his insurance company regarding the payout and they say the cheque will go to him as he is their customer.

 

A gets upset and insists he hands the cheque over to put towards the finance.

 

B is having none of it saying he will buy another car and carry on paying the finance.

 

A doesn't trust him to carry on paying for the next four and a half years.

 

Is there anything A could do to get hold of that money?

Personally I think not.

He made a stupid mistake and now I think he's got to live with it.

[unclebulgaria67]

What type of finance ?

 

Personal loan or specific car loan ?

 

If the car is registered to the finance company, they have to be notified of write offs and they will want the loan paid off.

 

If it is a personal loan by A and they have gifted the car to B, there is not much they can do, apart from issue a court claim, advising that the car was not a gift to B and they just had use of it. That a verbal agreement existed between the two parties and B having claimed for a total loss owes the money to A.

[merlin100]

From what I can gather unclebulgaria it's car finance.

[unclebulgaria67]

So the Insurance company should have done HPI check and paid finance company.

 

'A' will have to tell the finance company that the car was a write off and what has happened with the car.

Then based on what they say, if they want the Insurance money and 'B' does not pass it to 'A' they will have to sue them for it,

[martin2006]

I would suggest A contacts the finance company and informs them that B's insurance is paying B directly instead of clearing the finance with them, an HPI check will confirm this.

 

Other than that its upto the finance company to insist they are paid and not B. The finance co are the legal owner despite who is named as the RK