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GM sees increase in faulty ignition switch claims

Posted on Friday, November 14th, 2014   

Kenneth Feinberg, General Motors Co,’s lawyer for all cases involving faulty ignition switch claims, may begin considering regulators’ files for relevant accidents. On November 12, Clarence Ditlow, executive director of the Center for Auto Safety, sent a request to Feinberg suggesting looking for possible switch victims in the regulator files. Ditlow also claimed that Feinberg “should be processing claims faster.”

Feinberg responded to Ditlow, stating “I want to make sure that the notice program and our outreach efforts reach the right people. We are considering Clarence’s suggestions.”

Feinberg, however, disagreed that he was handling claims too slowly. He noted, “we have processed every single claim that has been submitted to us with documentation,” and that they have processed more than 800 requests for payment. Feinberg has received around 1,500 claims since August 1st, and more are expected before the December filing deadline.

There have been 30 reported fatalities linked to GM’s defective ignition switches. GM has already reserved $600 million to pay accident claims, but the number of fatalities has already exceeded GM’s initial estimates. This could indicate that the compensation fund for switch defects may not be enough.

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