Auto Insurance Claims: Insurance claim overpayment, state of south carolina, repair estimate

Question
In 2006, I was involved in a car accident in the state of South Carolina.  I was a passenger and a friend was driving.  The Car was owned by a friend of my friend in the state of Tennessee.  I was asked to take the car in for a repair estimate by the two parties.  A check was issued to the friend who was driving and in my name too.  He had asked for me to have the check issued in my name too because he had no bank account and it would be easier for cashing purposes.  We both signed the check and deposited into my bank account. I ended up purchasing the car and moved to Florida.  I took the car in for repairs (almost 2 years later) under the claim.  The damages exceeded the amount of the check.  The insurance company paid the full amount for the repairs.  A couple of years later the insurance company found that they had made an error and asked for me to pay the amount of the check back to them.  It has been 4 years ago, what can they do legally if I don't pay the money back?

Answer
Hi Cindy,

This is a very confising situation. If it is still within the statute of limitations in the state where all this occured, then the insurance company may be entitled to reimbursement if the claim was paid in error. If it turns out that they are entitled to reimbursement they will demand that you pay them back. If you do not pay them back they will likely file suit against you in order to obtain a judgement against you. Once they have a judgement against you they canfile a lien ahainst you which will keep you from buying ot selling any property for 10 years or until you pay the debt. A lien will also harm your credit score.

You should speak with an attorney. This could be a very sticky situation.

I hope this helps
Richard Hixenbaugh