[NC] Do you have to respond to a demand letter from a third-party company after a closed insurance claim?

NC Car Accident

Liz

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It sounds like a complex situation, especially with both parties being found at fault and no tickets issued. If the claim was closed with no payout, and now you're receiving a letter seeking money, you would have no obligation to respond. Especially if nothing was paid out.

In North Carolina, which follows a strict contributory negligence rule, a finding that both drivers share fault typically bars either side from recovering damages from the other, which supports the position that there is no independent legal duty to respond to a third party's demand for payment here. If the third party is acting as a collection or subrogation agent rather than the insurer itself, its contact practices may also be limited by consumer protection law, including the federal Fair Debt Collection Practices Act, (15 U.S.C. § 1692d), which prohibits harassment or abuse in connection with debt collection, and North Carolina's Collection Agency Act, (NC Gen Stat § 58-70), which regulates collection agency conduct in the state.

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I was wondering if I should even reach out to the third-party company?

Lexi, Chatbot

I understand that you're feeling uncertain about reaching out to the third-party company. What specific concerns do you have about contacting them?

Can I follow up on my previous chat?

Lexi, Chatbot

Have you had any previous interactions with the third-party company that might influence your decision?.

I meant the chat I had earlier on here.

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your previous chat.

No.

Liz

Hi there! Welcome. My name is Liz and I've been an attorney for more than a decade, and I am here to assist with your legal concerns. Just so you are aware, our service is a legal information-only site. No attorney-client relationship is formed from our conversation. So I can best help, what legal concerns do you have?

Are you able you see my previous chat so I can explain better.

Liz

We unfortunately can't see your past chats, each one creates a unique ID.

Oh ok. It was in regards to the third-party company about a wreck my son was involved in, and it wasn't certified or anything like that. Having looked them up and seen the terrible reviews, I was wondering if it would be better to not reach out. They sent us a letter seeking money.

Liz

Could you tell me, what does the letter say exactly? If they're not a party involved, not reaching out can be a good idea so that you are not involved with them.

It basically says that their client, the insurance company, is seeking money to the tune of almost 15k in regards to a wreck where the claim had already been closed.

Liz

The claim was closed and paid?

It was closed and no payout to us. Both parties were found at fault, no tickets issued.

Liz

I was told to send a formal letter and to mention contributory negligence and include copies of meta glasses video, police report, and dash cam footage. I'm in NC and he was cited at fault in the police report.

Liz

The third-party company, though, is not a legal group, so you technically don't have to respond at all.

Ok. I was just anxious at the thought of them.

The darn thing keeps cutting me off, but it just made me anxious at the thought of them continuing to send me correspondence and increasing pressure, because I've heard they use high-pressure tactics and are very threatening in their language. I didn't want to, I'm super paranoid, I'm the type of person that walks out of the store if I didn't buy anything and I feel guilty even though I didn't buy anything. I'm always afraid they're going to come after me. I'm just very paranoid about things like that.

Liz

They could try to send something else. If they continue, you can tell them to essentially file a legal action or leave you alone, as they are not allowed to harass you.

Ok, thank you so much for the advice! I hope you have a wonderful night, and please forgive this horrible typing, lol

Liz

You're very welcome.

Liz

46,424 satisfied customers

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