I received a check from my insurance company two months ago made out to me and to an "Automotive Body Shop" (the check did not state a specific body shop). I endorsed the check and deposited it into my account. The check cleared three days later and I used the funds to repair my car the following week.
It is now two months later and I've found out that the check was not endorsed properly because it did not contain the signature of the "Automotive Body Shop" and that I have to repay the bank for the amount of the check. I asked the bank to have the check back so that I could get a signature from the body shop, but they refused. The bank said that my only option is to get a replacement check from the insurance company.
However it took me three weeks of persistent badgering to get the insurance company to send the first check. I only live in the US two months out of the year and am returning to New Zealand in four days, so getting a new check will be impossible. What should I do? I have already spent the money on repairs and do not have the amount that I owe the bank. Is there any way that I can force the bank to return the check to me, so that I can have it properly endorsed? How can I resolve this situation?
The insurance company has the control here as they are the ones saying the check was not endorsed properly. I don't know why it was issued and payable to an unknown company. The insurance company went back to the bank and said they made a mistake and had to "undo" the payment of the check, so the bank took the money from you and said you had to repay the bank. At this point you should still want your claim paid by the insurance company, but you'll have to do it long distance as this will certainly take time. You'll need a new check and you can then repay yourself if you've paid the bank, or you can then repay the bank.
You may be able to convince the insurance company to issue a check to just you. They obviously did an assessment of the vehicle to know there was damage. Between photos and the repair invoice, you can prove the work was done. By issuing the first check they have approved the claim, so a new check shouldn't be an argument.
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The insurance company has the control here as they are the ones saying the check was not endorsed properly. I don't know why it was issued and payable to an unknown company. The insurance company went back to the bank and said they made a mistake and had to "undo" the payment of the check, so the bank took the money from you and said you had to repay the bank. At this point you should still want your claim paid by the insurance company, but you'll have to do it long distance as this will certainly take time. You'll need a new check and you can then repay yourself if you've paid the bank, or you can then repay the bank. 