Assignment of Proceeds-What can someone tell me about the legal

[Roy Smalley]

As differentiated from assignment of rights. Seems some shops are able to force the issue by getting the assignment of proceeds from their customers to force the issue of short pay by insurers on invoices.

[MarkFP]

As differentiated from assignment of rights. Seems some shops are able to force the issue by getting the assignment of proceeds from their customers to force the issue of short pay by insurers on invoices.

I'm certainly no expert on this subject, but I always viewed the assignment of proceeds something to be used with first party situations where the amount was not in dispute... just the rare cases we needed the draft to be sent directly to us. The usual situation is where our customers are wintering in another state, and we repair and return the vehicle to their home here, and receive payment and supplements directly from their company.

My understanding of the assignment of rights is it usually does not apply to first party contracts and is more effective with third-party losses. In the very few cases I have used this power, it gave me the ability to enter court in the shoes of the damaged party... and present issues in regard to loss of use, diminished value, capping and inferior parts. All facts that the actual victim would have a hard time presenting, and all issues that usually take the local hired defense lawyer by suprise.

I have modified my views on both of these over the last few years... I've come to the point where I do not have the time or inclination to take on those battles. Now I just give the information I think relevant to the customers, make them pay the bill and offer additional services if they want to pursue it. Of course we know 99% don't want the bother, but when that one in one hundred comes along and wants to challenge a wrong... they are more effective than me taking 50 "rights of assignment".

[Tim]

cases we needed the draft to be sent directly to us... and we repair and return the vehicle to... and receive payment and supplements directly from their company.

You mean a DTP, Direction to Pay.

I have heard of car dealers using assignment of proceeds when they take a wrecked car in on trade and repair it prior to resale. Using the insurance proceeds. I don't know if it is legal or not.

I have always wondered what would happen if I wrecked my car away from home on vacation... and didn't want to keep it. Couldn't one assign proceeds to a body shop or to the dealer who takes the car in trade?

I suppose a dealer could take a title and sign it as purchaser while the car is being repaired and have the rights of the insured all the while.

Does a lease company need to formally assign proceeds to the person who is leasing the car? I mean shouldn't the lease company be named as the primary insured... Although I have never really seen it transpire like that.

Could assignment of proceeds be confused with a DTP?

I think I could be confused. As usual.