ALI asked in Business & FinanceCredit · 7 months ago

Geico ruined my wife’s credit by passing Gaps deadline?

Our car was flooded. Geico didn’t pay our car claim for over 6 months. Because of this wait we ended up having to hire a lawyer. We weren’t able to afford our payment for 8+ months so the car got repo’d (we had to get another car payment to have a car and couldn’t afford paying an extra note). At about 10–11 months the lawyer got them to pay the car, however we were upside down on the loan 12,000 dollars. Gap sent us a denial letter today saying the won’t cover it because the car was past their deadline. However Geico kept purposefully delaying and delaying. It ruined our credit. Can we sue Geico for ruining our credit or do anything? Had they paid the car within 5-6 months it would not have got repossessed by the bank, and gap would have paid it

If it makes any difference the car went to the auction and Geico was the one who bought it

My wife’s credit is 807 and she has a very long history of goodness, please what can we do about this legally?

8 Answers

  • 7 months ago
    Favorite Answer

    Nope, that's not what happened. Geico's settlement has nothing to do with your GAP deadline.

    Here's your problem: You weren't making payments on the vehicle itself, you were making payments on the money you borrowed to buy it. You, not Geico, made the decision to stop making payments on your loan. Nobody from Geico or your lender told you to stop making those payments, that was your decision.

    You also decided to completely ignore all the reminders and warnings you got from the lender, which led to the vehicle being repossessed. You weren't "upside down" at that point, you were in complete default of the loan contract. And the minute your lender filed for repossession, the GAP policy expired completely. That was the deadline.

    You can sue Geico if you want, but you won't win. Their team of ruthless lawyers will provide stacks of documentation confirming that they did everything required of them, and you'll provide your idiot opinion that it was somehow all their fault. Documentation is everything in a court of law, idiot opinion is worth a whole lot less.

  • Erik
    Lv 7
    6 months ago

    That's messed up what they did, but it doesn't mean you can stop making payments. That's on you.

  • lucy
    Lv 7
    7 months ago

    Because you failed to keep up the payments on the car, then the car was repossessed, thus the GAP was not valid. So, when the lender took possession, they were now the owners, thus Geico finally pay ACV, which was not enough to pay off the loan, thus you were upside down and owed the balance.

    A totaled car like a flood should have been paid w/in 30 days, (unless) there was a huge flood, thus Geico, like many insurance companies would be hit with thousands of flooded cars, thus could delay settling.

    My guess like poster AJ, was that they suspected this claim due to fraud, thus they were investigating this under the SIU (special investigation unit). If so, then they won't pay, unless they can prove it was not fraud.

    So, (if) there was a huge flood and you could prove that Geico was (not) paying the customers or delaying (all) of the claims for this long, then unlikely you can prevail.

  • Anonymous
    7 months ago

    If you hired a lawyer ....why ask questions on an international site ?

    I think there's more to your story.

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  • May
    Lv 5
    7 months ago

    You can sue anybody at anytime for any reason under the sun. Your lawyer could have told you that. You hired him, why not USE him !

  • Anonymous
    7 months ago

    If I were wager, it would be on Geico.

  • 7 months ago

    You couldn't afford a lawyer to speed up the process, you certainly can't afford a lawyer to take on Geico's lawyers.

    When you are in a hole, stop digging.

  • A.J.
    Lv 7
    7 months ago

    Payments for physical damage to a car is generally only delayed in fraud investigation. You state only half a story. What was Geico's reason in denying your claim? Anyone can sue just about anyone, but you need negligence or purposeful action by Geico and measured damage. And, you were upside down on the value. Your own contributory negligence subtracts from your claim against Geico.

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