Can a lienholder decline to pay a mechanic?

UPDATED: Mar 13, 2012

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Can a lienholder decline to pay a mechanic?

I was in a car accident and my insurance company made the check payable to my lienholder and myself. My lienholder is refusing to release the check to the mechanic so that I can pick the car up. It almost been a month of us going back and forth. Can they do that?

Asked on March 13, 2012 under Accident Law, New York


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

A lien holder can refuse to pay a mechanic for the car that a repair check has been issued for. However, in the situation that you have written about, unless the car payments owed the lien holder are in arrears, it does not seem right for him or her to refuse to pay the mechanic who repaired the vehicle.

I suggest that you consult further with an attorney that practices in the area of auto repair law and lien law.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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