Dechert LLP
Christine Levin
My client, Ms. J., sought funds from FEMA to cover the remainder of a vehicle loan for a car that was totaled in Hurricane Katrina. Her insurance covered the vehicle's actual value and paid the bank that amount towards her loan. However, she still owed the bank more than the car's actual value. FEMA denied her claim on the basis that she had insurance coverage.
Raising her grandchildren alone, trying to repair the damage to her home from the hurricane, and having lost her job due to the hurricane, Ms. J. was overwhelmed. She had no money to pay cash for a car and she could not get a car loan until she paid the additional amount she owed on the totaled car. Without a car, she could not find work to support her family. She felt she was out of options.
We argued that because the insurance company paid the insurance policy proceeds directly to the bank, Ms. J. was eligible for the FEMA transportation benefit. After advising FEMA that we were planning to file an appeal, FEMA notified us that Ms. J. was eligible for the maximum transportation benefit of $7,500 and that the funds would be available to Ms. J. the same week. After Ms. J. received the FEMA payment, she called me to thank me. She said that she sent a check to the bank to pay off the balance of her car loan and purchased a "new" used car. She was very grateful.