On 12th May this year someone bumped into the back of my car while I was waiting at a junction. The lady in question admitted fault. The car went to a garage and unfortunately I was told that the car wasn't worth the amount of money it was going to cost for the repair. The insurance company decided to get a second opinion from another garage and again, it wasn't economically viable for repair.

To cut a long story short they offered me an X amount of money for the car and I accepted this offer. I was told I would be sent a cheque and I sent my log book, MOT certificate and service history records off to the insurance company as they suggested. They came and took my car away too. A couple of week's passed and I still hadn't received a cheque so I decided to get in touch with the insurance company again, which has been a right inconvenience as I am always kept on hold on the phone). Anyway, I eventually got through and was told that the reason that my cheque had been held up was because they ran a check on the car and apparently it had come back as having existing finance owed on it. Well you can imagine I was mortified. I bought the car with cash from a man that deals in cars.

I just wondered where I stood in this situation. I now have no car and no money to buy one. Do the insurance company have a legal obligation to compensate me. I know that the pay out will be coming from the third party's insurance, but does this mean I have no come back. Anyone out there had a similar experience that could advise me. I was driving the car round and never knew about any outstanding finance until this insurance claim.

Many thanks in advance

have you checked this information is correct with a motor checking co; HPI or similar?

The finance co owns the car so it is them that will get the money!

you will have to get your money back from the dealer that sold it to you, court action if necessary.

Thanks for the info raydetinu. Insurance been in touch with me today and apologised saying that it had been a mistake and that finance wasn't owed on it. All that worry and stress for nothing.

Cool, glad it worked out ok.