BP to cut payments on 40,000 claims of individuals affected by oil spill, cites paperwork problems

BY Meena Hartenstein

Bates/AP

Hurricane Alex delayed oil containment efforts, though the White House remains optimistic about the latest method.

BP‘s latest move isn’t going to win the beleagured oil giant any popularity points.

As oil continues to spew into the Gulf, BP has said it will significantly cut payments on claims to those impacted by the disaster because of problems with their paperwork, the Associated Press reported.

Kristy Nichols, the secretary of Louisiana’s Department of Children and Family Services, sent an open letter to federal BP claims administrator Kenneth Feinberg on Friday, saying the company had confirmed to her that they would decrease payments “to individuals whose claims files were incomplete.”

Nichols cites a BP representative who told her that 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 said. “This action is irresponsible and in complete contrast to BP’s repeated promise that they will ‘make things right.’”

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