Despite the pleas of two U.S. Senators, General Motors will not extend its deadline – for a second time – for victims of the maker’s ignition-switch vehicles to file for compensation benefits.
Sens. Richard Blumenthal (D-Conn.) and Edward Markey (D-Mass.) in a letter to GM CEO Mary Barra asked the automaker to put off the fast-approaching Jan. 31 deadline to allow some of the victims and their families to get additional information so they can make an informed decision about their options.
The pair noted that a Justice Department investigation of the problem with the vehicles has yet to be finished and they also noted that the U.S. Bankruptcy Court hasn’t determined if the current GM is liable for the problems with the cars.
“Put simply, right now, injured parties do not know enough about their legal rights or facts to make an informed decision,” the senators wrote. “Indeed, they cannot have sufficient information until the DOJ concludes its criminal investigation and the bankruptcy court decides whether to lift the liability shield that GM now unjustifiably hides behind.”
At issue is nearly 2.6 million small cars recalled by GM in 2014 with faulty ignition switches. Under certain conditions, the switches can move from the “run” to the “accessory” position, cutting the power to the vehicle’s steering, brakes and airbags, which can potentially cause the driver to lose control of the vehicle.
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Initially, GM attributed 13 deaths to the problem; however, the official number has risen to 50 deaths and 75 injuries. The automaker set up a compensation fund for the victims and their families. As part of the review process for claims, the numbers increased. GM set aside $400 million for the fund, but said that number could rise to $600 million.
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People who accept compensation benefits from GM agree to not sue the automaker at a later date. The initial date to file for benefits was Dec. 31, 2014, but the deadline was extended to ensure everyone who might be eligible had been contacted and had time to put together a filing.
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At this point, there are an additional 802 claims, 67 for death benefits and 735 for injuries, that are currently under review. GM issued a statement saying it plans to hold to its current deadline.
“Our goal is to be just and timely in compensating the families who lost loved ones and those who suffered physical injury,” the statement said. “We have conducted extensive outreach about the program and contacted more than 5 million current and former owners of the recalled vehicles. We previously extended the deadline until Jan. 31, and we do not plan another extension.”
I’m sure the siren chasers are working overtime to submit bogus claims, as always. This is like financial jackpot heaven for the scammers.
Hey Jorge, I hate to break the news to you but it is quite expensive to sue so perhaps you should take off your tin foil hat.
GM will wind up out of business because of their own incompetence. Its called, “culling the herd”.
GM will try to hide behind the bankruptcy but since they were aware of this BEFORE the bankruptcy, this will cost them dearly. It does not help that Gitner didn’t do his due diligence before he allowed the bankruptcy and looking at how the “American” auto industry got bailed out, it is time for them to go the same route as the English auto industry. Sold to the highest bidder.
nob-
Having family in the paid liar Biz, I’m here to tell you it cost a consumer essentially nothing to file a liability lawsuit. Siren chasers reap multi-million dollar settlement fees from these cases so they are more than happy to file frivolous, bogus, false claims – and they do so daily.
As far as GM is concerned they have certainly been unscrupulous in the past and may be in the future but they are not going anywhere in the foreseeable future – despite your personal distaste of GM and some what Ford. LOL