Total loss and loan interest

Asked about 1 year ago - Framingham, MA

my car was a total loss on 5/5/2013 and my loan well the payoff was 13,500. my car insurance only gave me 12,500 and they send the check to my bank but the bank said they never got the check. so my insurance send a other check to them and i had to wait a month. after that they told me to wait for the gap which was other month. Now the gap just told me now 7/29/2013 they are not going to pay the rest. but the thing is that my bank charging me interest every day ($1 a day) and won't let me pay until the gap pays. My bank also said that the interest will only go away after gap pays them and not me. can they do that?

Attorney answers (3)

  1. Keith G Langer

    Contributor Level 19


    Lawyer agrees

    Answered . Interest is a function of debt. Until the loan is paid, interest runs.

    The foregoing is for general information purposes and does not establish an attorney-client relationship.
  2. Alan James Brinkmeier

    Contributor Level 20


    Lawyers agree

    Answered . Yes

  3. Gilbert Richard Hoy Jr


    Contributor Level 13

    Answered . Why is your gap policy not paying the $1000, and why does your bank say that you cannot pay until gap first pays. That does not make sense to me. But your interest does continue to accrue until the loan is paid off.

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