Waiting For The GCCF Letter With Your Final Offer

There are lots of people out there waiting around their mail box for the GCCF letter to come in with their final claims offer. Just to let everybody know. the 90 day deadline for an offer from GCCF is being taken very lightly by the GCCF, and  not everybody is being kept inside that deadline.

So there is always good and bad news about this, I will try and lay out what I see as the good news in this, and what I see as the bad news.

Bad News About The GCCF Final Offer Letter.

So the bad news first, then you can read down in this post and get the good news. The bad news is that according to GCCF people filing claims fall into the following categories.

1) People don’t provide enough documentation to substantiate their claim. This means that if you are looking to get $100,000 as you final claim direct from GCCF, you had better follow their methodology, and you better have lost $50,000 in 2010,and times that number by 2 and offer you $100,000 as your final claim. You better make sure its clear that your loss is directly tied to the oil spill, and you better make sure that its clear to them, that you did everything in your power to minimize your loss for 2010. Your claim better fit straight into their box that they have so nicely put up for how you calculate your damages. If your claim in any way deviates from the norm, it will be a long road to get the money you deserve from the GCCF.

2)People will settle for less than what their claim is worth. GCCF sent out letters to personal claims and business claims to try and get them to accept $5,000 or $25,000 to give up their final claim and just accept a quick pay. This strategy did work for the GCCF in many cases, as to date over 100,000 people have accepted this option. The strategy was that if we stop paying people what they are owed, they will eventually take what ever we offer them..

The GCCF is dragging out the response on the final claims as long as they can to get more money in their account to actually pay out what they are offering people. As they spend 1 billion dollars just in Quick Pay in the first quarter of 2011, there is no money to pay anything else. So they had to send out offers to people that they probably knew would not get accepted because they simply don’t have the money to pay the claims.

Good News About The GCCF Final Claims Letter

I am happy to report some light at the end of the tunnel as I mostly talk about the bad stuff going on its very refreshing to finally be able to tell you guys some good news.

Here is the good news

1) 97 % of the Quick Pay has been paid ( only 3% are left)

2) The GCCF got another 1.25 billion April 1 to start paying Interim and Final Claims.

Since I like numbers and a new statistic just came out from GCCF yesterday, we are going to look at the good news though the numbers for Interim Claims and Final Claims.

Good news GCCF Interim Claims

So if we look at what has been going on with these claims, I can put up these numbers.  8% of all filled interim claims ( 68,852 total interim claims to date)  have been paid, the average payment has been around $13,400 and if they took 625 million dollars (1/2 of the 1.25 billion this quarter) they would pay 46, 641 people their interim claim this quarter (Apri 1 – June 30 2011) that would represent 68% of all interim claims being paid at the end of June 2011. That to me would be good news when looking at how slow the process has moved along to date. Now the problem is that Interim claims are coming each quarter so next quarter they would have a similar burden to pay. Also I know of about 500-1000 new claims coming in each week that would come on top of the claims already in with the GCCF. No matter what if we at the end of June would see a statistic of 68% of all interim claims being paid that I think for most people that would be good news. The point I am trying to make is, that the good news are that Quick Pay payments should be almost over leaving interim claims and final claims as the next claims GCCF will spend its money on. How do I know that most of all Quick Pay have been paid. Well from the simple math that 169,008 emergency payments were paid out and to date 115,095 Quick Pays has been paid out. So there are not a whole lot of more people that are eligible for a Quick Pay.

Good News Final Claims

If we follow the same strategy for the final claims and look at the numbers.  To date 7.6% of all final claims have been paid (98,344 total claims to date) they have been paid an average of $11,841 each and 7,533 people has gotten paid. If again the GCCF took the 650 million (1/2 of this quarters money) and paid final claims another 54,894 people would get paid or 60% of all outstanding Final Claims at this point. Now there are some problems I think with the numbers of final claims payments as they are really low. So I think maybe they took the small onces and got them out of the way, and I expect much bigger once to come along later. But still if they spend the money wisely this quarter, and get Interim and Final claims paid out they should be at a point after this quarter where things look a lot better, and where people finally get an offer in the mail.

Disclaimer on what has been written above.

So I would love to see this happen for all the people out there waiting for a letter from GCCF with a fair settlement, as numbers normally don’t lie it could be a possible scenario of what could happen over the next 3 month. I hope this will be the case. Now another scenario would be that the GCCF would send out offers for much less than what people should be getting and try and get people settled for less money. If this happens I would suggest to all that reads this to quit dealing with the GCCF and hire an attorney and get the money you deserve.

GCCF Interim Claims Not Getting Paid

So here is the thing, with the GCCF Interim Claims. It was a very nice idea when Kenneth Feinberg came out and said, if you are not ready to take a final payment yet, because you don’t know what the future holds, take an GCCF Interim Claims payment every 3 month for you lost in the last 3 month. I like that idea and I started telling everybody about it, and thought that was the way to go.

Now here is the problem, only 7% of all people (66,799 claims) have been paid an interim claim, and yes we are real close to the 4 month in 2011, and they should have started in December, 2010. This would mean that you in March would have gotten paid for December, January, and February. But that has obviously has not happened. SO…..

GCCF Interim Claims


GCCF Interim Claims: Why Are They Being Offered But Not Paid ?

So the GCCF Interim Claims Payment was the brain child of some accountant inside GCCF or maybe even BP that found out that 1.25 Billion Dollars per quarter was not enough money to settle 1 million claims along the gulf coast.

The interim payments was invented almost like how the lottery has the “Cash Option” or “30 years Annuity ” its just a way to push back the payments, until they actually have the money. I understand that and it should be the way GCCF should would want to go.

I would also suggest the Interim payments, because of the future dangers of taking the final payment now, and not knowing what the future holds. However seeing the statistics after 4 months of work its not looking good .

Who Has Been Paid ?

GCCF Quick Pay97% Has been paid.  (105,271 claims)

GCCF Interim Claims: 7% has been paid something (66,799 claims)

GCCF Final Payment: 6% has been paid ( 97,318 claims)

Its pretty clear from GCCF’s own statistics that the focus has been on the Quick Pay claims to try and get them out of the way. It has cost GCCF a little over 1 billion dollars to get these 100,000 cases out of the way. I would think that they will look at the GCCF Interim and GCCF final Claims and try and get some of those cases settled.

Remember this, the first wave of 5,000/25,000 letters have already gone out and very few people have accepted them. This was a way to get people off their final claims or GCCF interim claims, and get them to settle for a Quick Pay. Not a lot of people fell for this trick, and I am glad to see that.

GCCF Interim Claims Should Start To Get Paid Now

GCCF get its next 1.25 billion dollars April 1, 2011, I am sure we will see some more movement in the GCCF interim claims, its just a matter of time before people are going to get a real offer from GCCF.

Now I think what will happen  is an offer for final payment will accompany the interim claims offer.

GCCF Interim Claims Is Not Something GCCF Wants To Pay

GCCF wants to end the claims process as soon as it has money to do so, because of the potential future problems that might come. Hurricane damages, Tourism decline, Sea Food Contamination, and lots of other potential damages are coming from all that oil on the bottom of the Gulf Of Mexico. Again its my advice to take the GCCF Interim payment, as long as you can, and don’t sign a final payment until you absolutely have to.

A new long at GCCF Interim Claims Strategy

Waiting For The GCCF Letter With Your Final Offer