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Hispanic and Women Farmers and Ranchers Claims Process 1.

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Presentation on theme: "Hispanic and Women Farmers and Ranchers Claims Process 1."— Presentation transcript:

1 Hispanic and Women Farmers and Ranchers Claims Process 1

2 Overview Claims Process Framework Claims Process Guidance Questions & Answers 2

3 Alternative to Individual Litigation On February 25, 2011 USDA and DOJ announced an optional and voluntary program available to Hispanic and women farmers and ranchers who allege USDA discrimination between 1981 to 2000 This is an alternative to litigation—intended to be an expedited process Existing Hispanic and female group lawsuits against USDA were not certified as class action suits No Congressional action is needed; the funds for monetary relief will come from the Judgment Fund 3

4 Potential Claimants Potential claimants include Hispanic and women individuals that farmed, or attempted to farm, during the following periods: Women January 1, 1981 to December 31, 1996 And/or October 19, 1998 to October 19, 2000 Hispanic January 1, 1981 to December 31, 1996 And/or October 13, 1998 to October 13,

5 Potential Claimants Hispanic and women Farmers and Ranchers whose farm loans were: – Denied during application or review – Provided late – Approved for a lesser amount than requested – Approved with restrictive conditions – Not appropriately serviced Hispanic and women farmers and ranchers who were actively discouraged by the actions of USDA personnel from applying may also be eligible 5

6 Claims Process Framework There are 2 Tiers of relief; each Tier has proof requirements and relief limits Up to $1.33 billion dollars is available through the Judgment Fund for Tier 1 claims; Uncapped fund for Tier 2 claims Debt relief of $160 million is available Tax Relief of 25% on payments is available Moratorium on accelerations, foreclosures, offsets and interest accrual during the claims process 6

7 Payment for Successful Claimants Tier 1 Payment of up to $50,000 Final amount is contingent upon number of successful claimants. Payments may be prorated All Tier 1 successful claimants will receive the same amount. Debt relief on eligible USDA farm loans Tax relief on the payment and on debt relief. (payment made directly to IRS) Tier 2 Guaranteed payment of $50,000 Debt relief on eligible USDA farm loans Tax relief on the payment and debt relief – (payment made directly to IRS) No cap on the number of Tier 2 claimants or the aggregate amount of money paid to prevailing claimants If Tier 2 payments are less than $100,000 million, unused balance will be rolled over to Tier 1 payment 7

8 Evidentiary Standard Substantial Evidence – Defined as relevant evidence appearing in the record that a reasonable person might accept as adequate to support a conclusion after taking into account other evidence that fairly detracts from that conclusion. – Documentation is not required to prove every element. The Claims Adjudicator will use a standard that is a lower standard of proof than the standard required by the federal courts. 8

9 Documentation Requirements Tier 2 has strict documentation requirements – A claimant MUST provide either a copy of the loan application and supporting documents, or correspondence or other documents from USDA acknowledging receipt of the application, and authenticate such evidence by a sworn statement from the claimant under penalty of perjury – A claimant MUST produce a copy of a timely written complaint to a U.S. Government official that was sent before July 1, 1997, and authenticate such evidence by a sworn statement from the claimant under penalty of perjury Tier 1 has less vigorous documentation requirements but is still designed to ensure that fraud is deterred Persons who do not qualify for Tier 2 will automatically be considered for Tier 1 9

10 Funding - Judgment Fund At least $1.33 billion available for payments to successful claimants from the DOJ Judgment Fund The Judgment Fund is a permanent appropriation that does not require Congressional approval USDA appropriations will not be used to pay awards 10

11 Debt Relief Up to $160 million available to successful claimants Adjudicator must tie discrimination to certain loans in order for debt relief to be granted Only farm loan program (“FLP”) loans originating between will be eligible Prevailing claimants with FLP debt that remains in default will have the opportunity for another round of primary loan servicing 11

12 Neutral Claims Administration Each Claims Package will be processed and adjudicated by an independent third party that will be hired by USDA The Claims Administrator and Adjudicator will be operational before the announcement of the Claims Period Claims Packages will receive a unique identifier and will be tracked in a centralized database All questions relating to specific Claims Packages will be answered by the Administrator and not USDA 12

13 Timeliness Outreach Time that USDA will focus on informing potential claimants about this claims process option. Inform stakeholders about the claims process and encourage them to reach out to potential claimants to request a claims package through the website or call center March through July – focused effort Claims period In mid-2011, USDA will announce the beginning of an official claims period. After that date, claimants will have 180 days to complete and submit a claim. Claimants receive claims package from administrator adjudicator File claims package during claims period Outreach efforts will continue during this period 13

14 Claims Period After an initial Outreach effort, USDA will announce the opening of the Claims Period in mid-2011 The Claims Period will last 180 days A Claims Package will be delivered to those requesting a package through the call center or website Fraud Prevention measures are included in the program 14

15 Call Center and Website Requests packages through a Call Center or website:  (toll-free) Call Center will take contact information in English and Spanish beginning 2/25/2011 Call Center is staffed Monday to Friday 9:00 am to 8:00 pm (EST): Messages can be left at any other time. Claims Process Website: Contacting the call center or website is strictly voluntary 15

16 Claims Packages Individual who request a claims package will receive detailed information when they receive their package 16

17 Filing A Claims Package Any person who wishes to participate in the Claims Process must:  File a Claims Package with the Administrator/Adjudicator  Execute a settlement agreement A claimant who participates in the Claims Process must swear under oath with respect to the claim submitted Individuals cannot participate in the claims process without submitting a claims package before the claims period ends Any individual who executes a Settlement Agreement will be releasing the Government from past credit-related civil rights claims addressing loan making or loan servicing during the period of time covered 17

18 All individuals inquiring about the claims process, should be directed to: – Farmer and Rancher Call Center: – Claims Process Website: – questions to: USDA Will NOT provide legal advice 18 Summary


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