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BP Cuts Payments to 40,000, La. Official Says

Posted by on Jul. 12, 2010 at 9:19 AM
  • 6 Replies


Quote:

 (AP)  BP has decided to reduce payments to tens of thousands of people whose claim files are incomplete, the secretary of Louisiana's Department of Children and Family Services said.

Special Section: Disaster in the Gulf

"This action is irresponsible and in complete contrast to BP's repeated promise that they will 'make things right,'" the secretary, Kristy Nichols, wrote in
a letter sent Friday to federal oil spill claims administrator Kenneth Feinberg.

It was not immediately clear how severe the payment cuts would be. BP did not immediately respond to a request for comment.

Nichols said her department discovered the change after reviewing BP's Thursday claims summary, which showed a significant cut in daily payments.

She said a BP representative estimated more than 40,000 of the 99,508 people who have filed claims may get lower checks. That "will be devastating to individuals surviving financially month-to-month," she wrote.


http://www.cbsnews.com/stories/2010/07/10/business/main6666292.shtml

by on Jul. 12, 2010 at 9:19 AM
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Replies (1-6):
40isfun
by Christi on Jul. 12, 2010 at 9:23 AM

Bastards!  They will get away with it if Americans don't fight.

LauraKW
by "Dude!" on Jul. 12, 2010 at 9:28 AM
I wonder how incomplete "incomplete" is? Are they suspecting fraud? I would think if someone has an incomplete form they would just need to complete it - problem solved. You don't get unemployment without completing forms, or SS, or even a job. That said, I hope those who will be affected get their situations resolved quickly.
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40isfun
by Christi on Jul. 12, 2010 at 9:34 AM

I am not sure what the education level is of the people who are receiving these checks.  It would seem that some are part of poor towns and the Gulf was their only way of making money.  In addition to paying them money, BP should also be responsible for making people available to help them complete the forms.  Those people didn't cause this problem and it's ridiculous to put the responsibility on them to jump through hoops to get compensated for the damages.

LuvNMyBbs
by Bronze Member on Jul. 12, 2010 at 10:19 AM


Quoting 40isfun:

I am not sure what the education level is of the people who are receiving these checks.  It would seem that some are part of poor towns and the Gulf was their only way of making money.  In addition to paying them money, BP should also be responsible for making people available to help them complete the forms.  Those people didn't cause this problem and it's ridiculous to put the responsibility on them to jump through hoops to get compensated for the damages.

Agreed, the other issue I have is retraining these people into a different career that does not depend on gulf resources.  That should be part of their compensation package.  These people have not only lost their jobs but many have lost their only skill set.


Military Mamas...review your base and see what others have said at http://www.baseofpreference.com/


 

Della529
by on Jul. 12, 2010 at 10:54 AM

Excerpted from the letter; Kristy Nichols, DCFS to Kenneth Feinberg, BP:

Many of the affected claimants' available records are not acceptable in BP's documentation process and therefore cannot complete their case files. It is crucial that BP not continue to penalize these individuals and instead accept alternative forms of documentation, such as records held by the Louisiana Department of Wildlife and Fisheries.

In addition, BP informed the State on Thursday that it will begin adjusting claim payments based on the seasonal nature of fishing activities, which will also result in a decrease in payments. This latest news, added to the fact that many of these hard-working individuals and businesses have not received initial payments sufficient to cover all expenses, much less additional timely payments, will only add to the financial and mental strain already faced by this region.

Another issue recently identified is how shrimp, fish and oyster boat captains are classified by BP. Captains are small business operators who own their place of business (e.g., their vessels) and frequently owe large sums of money on those boats. However, BP classifies boat captains as individuals and does not take business expenses, including large monthly payments on the vessels, into consideration. This is especially significant because many captains were forced to buy new vessels after they were damaged or destroyed by hurricanes Katrina and Gustav. Monthly payments of $5,000 are simply not sufficient to maintain timely payments on boats and continue to pay for living expenses incurred by small business owners.

We also have been contacted by a number of individuals who have received no assistance because BP has classified their claim as moratorium related. To date, BP has not decided how it will handle these types of claims. When the State asked BP how many claims fall into this category, representatives stated that the current design of their database does not allow them to identify that information. This is a significant flaw in the design of the system and one that must be corrected in the revised claims process. The moratorium is the direct result of the oil disaster and people affected should be adequately, accurately, and promptly compensated.

http://emergency.louisiana.gov/Releases/07102010-letter.html

Della529
by on Jul. 12, 2010 at 10:57 AM

 

Quoting 40isfun:

I am not sure what the education level is of the people who are receiving these checks.  It would seem that some are part of poor towns and the Gulf was their only way of making money.  In addition to paying them money, BP should also be responsible for making people available to help them complete the forms.  Those people didn't cause this problem and it's ridiculous to put the responsibility on them to jump through hoops to get compensated for the damages.

Based on what I read last week, BP is requiring W-2's/Tax returns as documentation of their incomes, and a number of these people worked "under the table" for decades.

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