Robert
Irvine,#2Consumer Comment
Thu, January 12, 2012
You got a title loan on your car and had to buy additional insurance. First of all it is illegal for insurance to be required in exchange for a loan. However, the lender may require you to carry "full coverage" on the car but you can get this on your own and don't have to purchase it through the lender. However if you don't carry insurance they may be able to put "forced placed" insurance on you. So the question is what type of insurance did they sell you?
You said that the insurance company paid off the "primary lender". But to get a "title" loan you need a "clear" title. You could not legally use your car as collateral because it is still "owned" by the bank(primary lender) that actually holds the title. So unless I am missing something or there is some loophole I don't even know how you could even get this loan in the first place.
Next, if your attorney and (both?) insurance companies say that they should pay, why don't you have your attorney go after them?