Auto Insurance Claims: insurance check more than repairs cost, hail damage, insurance check

Question
i have a vehicle that was damaged by hail.  my insurance company inspected the damage and wrote me a check for damages.  the check was made to me and the credit union or lienholder.  the estimate to fix the hail damage was for less than the check was for.  when i tried to get the check endorsed by the credit union i was told that any amount over the amount to repair the damage would have to go towards the loan.  i talked to the state division of banks and credit unions and was told that as long as i did not owe more on my vehicle that what the book value was the bank could not force me to use the remaining money to pay towards the loan amount.   which is correct  ?????

Answer
Hi John,

If you were told by the state agency that controls banks that they can not take the money then I would have to assume the ageny is correct. You may need to have someone from that agency call your finance company to help you get this straightened out. If they won't call on your behalf, perhaps you could get them to put something in writing that you could then fax to your finance company.

I hope this helps
Richard Hixenbaugh