The more complaints about the compensation fund from BP (NYSE:BP) to pay victims of the oil spill, and Kenneth Feinberg, who administers the fund grow, the appearance they may not be justified grows with them.
While the media focuses on the whining and complaining, few focus on the substance of the complaints.
When you read the stories about whether the process if fair or not, you rarely, if ever, read about specific cases where someone was denied. You just hear about the whining and the fact BP damaged Gulf businesses when the oil well leaked. Who doesn't already know that?
The two alleged problems are lack of transparency and slow pace of the procedures. But some politicians are calling for government oversight, which anyone with a brain knows would slow down the process even more.
Feinberg says this, "It is clear to me that when 90,000 citizens of the Gulf accept a quick payment, it has nothing to do with economic compulsion but is the result of either having been adequately compensated or simply not being able to document any further damage."
The reason I believe Feinberg is telling the truth is it would be extremely easy to counter his assertions by those claiming they aren't being compensated for their losses to show proof of that.
It seems no one is showing proof, but again, just whining that they didn't get anything from the fund. You have to have suffered a real loss to get compensated. How hard is that to understand?
I think what's happening here is people think the BP fund is government money, and are attempting to game the system like many do with tax dollars.
As far as transparency, that seems to come from the apparent lack of explanation as to why people aren't receiving a payout.
But that doesn't seem to fly either. Feinberg has said many times people who get paid require documentation to prove they suffered loss. Simple enough. All people and businesses have to do is prove it.
The schizophrenic side of it is people are now complaining they're being "forced" to accept a quick payout. So you have people complaining the process it too slow while complaining the payout is too quick at the same time. Bizarre to say the least.
It also seems the cash-strapped states may be taking advantage of the BP oil spill and fund in attempts to get money to their disgruntled people by creating a scenario that doesn't exist.
If this was such a big story, there would be tons of people showing the media the paperwork proving they were unjustly denied money by Feinberg.
Until that happens, this isn't a story but a witch hunt. Show the proof or quit writing the nonsense.
This isn't to be sympathetic with BP, as they brought this upon themselves through the lack of oversight of their people and low safety standards.
But that doesn't mean because they caused damage to some that they have to pay money out to all. From these unsubstantiated assertions you would think that's exactly what's expected.
Monday, February 14, 2011
Is BP (NYSE:BP) Oil-Spill Fund, Feinberg Criticism Justified?
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7 comments:
You need to do more "thinking", and less posting. Your words do
undue stress to people such as myself who were denied with valid and full documentation.
BP is just as much a fraud as your blog.
Try reporting facts and searching
for the truth before you interject your feelings.
I, along with approximately 2/3 of all individual claimants, was denied. I assure you my claim was valid, as was eventually acknowledged by the GCCF. It took calls to several lawmakers to finally get a response from the GCCF as to why my claim was denied. The gentleman told me that my claim had been incorrectly processed as a one month claim instead of the six months it actually showed and that it should have been approved. My only recourse was to refile and wait at least an additional three months to see if it would be approved the second time.
My story is not unique. Claims were summarily denied and then offers of quick payment were dangled in front of desperate people to get them to settle quickly instead of waiting an unknown amount of time after which a majority of claims would be denied anyway.
I guess it is easy to make generalizations when you have no idea of what is actually going on, but do you seriously believe that 2/3 of all claims were fraudulent? The statistics are shown on the GCCF website for you to see.
What actually happened appears to be that Mr. Feinberg is trying to keep as much money as possible in the escrow fund to return to BP. To do that, he keeps as many claims as possible in limbo and summarily denies all that have not yet been processed when a deadline approaches and claims that they lack documentation. Oddly, there is no one with whom to speak to figure out which documentation is missing. Don't you think if that was really the problem, there would be a way by which to remedy it?
Here is a specific case and if you took the time, you could find thousands of similar ones. There is no transparency in the system. You can talk to no one that has any decision making power. Mr. Feinberg has a difficult job, but you would be better served by realizing there are actual victims that are hurting now and Mr. Feinberg could do a lot to alleviate that.
I feel you are completely unjustified in your support of Feinberg and his claim's payment process!! I wasn't denied, but was paid a 6 month EAC. That six months was for May-Oct 2010. I then, as instructed by GCCF, filed an interim claim, received by GCCF for the remainder of my 2010 losses on 12/17/10. The remainder of 2010 losses and weekly losses incurred equate to $1518 gross per week that I earned the 3 years previously up until I was laid off due to the spill on 6/12/10. Here it is... 2/14/11 - GCCF has all my tax returns, w2's, unemployment benefit statements etc to date. I still am owed the remainder of 2010 losses, plus my 1st qtr losses of 2011 and haven't received anything from them since 9/10. Now you tell me - I went from $1518 gross per week to $275 per week unemployment and am owed to date for Oct 2010 through 2/11. I think the GCCF is far from efficient - prior to BP's egregious error I never missed a weekly paycheck of $1518 and now I have to submit for lossed wages in increments of 90 days retroactively!! Maybe Feinberg should do the same and receive interim payments 90 days retroactively of $850,000 per month for the disservice he is doing!!
who the f&%* do you think you are? theyre are hundred of thousnds of claimants, all complaining about the same thing. I too was given an emergency payment that represented losses from may thru october. Here it is middle of february and ive been unemployed since june. what about november through half of february? Even with the people with approved claims are getting a piece of their low ball and stall tactic. they started with quick pay scheme and got 90,000 people to end their claim . Now they are offering 2x 2010 losses to give up your right to sue. What they are doing is very tactical for BP and it is not in the interest of the people who are affected. They are intentionally dragging their feet to get more people to take less money. If you were about to lose your house, even though youve lost $50,000 in the last 3 months, wouldnt you take a $25,000 quick pay just to keep from losing it?. Thats what they are counting on. In court they would owe you $500,000, but they just settled for $25,000 because they caught you at a bad time. This B.S. has to end. Alot of people are losing everything and getting screwed by feinberg and the gccf just because they want to take their precious time, and return money to BP
To add a little more evidence, does this sound like a process that is working well?
http://www.businessweek.com/ap/financialnews/D9LCO9402.htm
Nearly everyone can see the obvious conclusion here that the process is completely unacceptable except for Gary at Everything Gold. Perhaps he should reevaluate his position and actually do a little investigating next time.
well said, mr. blog writer, i've had it up to here with whining spongers out for a free lunch.
maybe bp should have played it like Chevron in the amazon and be fighting every inch....
I think it is absurd for someone totally disconnected from the situation to offer up any opinion on the matter. People, American people, are losing everything in their lives to something they had absolutely no control over. For anyone to say that BP, a foriegn company, should not have to pay EVERYONE that has endured any hardship from this event is tantamount to treason. Who are you to judge? I am deeply offended by your statements and suggest you move your ass out of my country.
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