The Texas Attorney General, Ken Paxton, has launched a lawsuit against VA Claims Insider, an Austin-based company that he accuses of exploiting veterans by misrepresenting its services and charging outsized fees. The legal action, initiated in a Bexar County district court, claims that the company lured veterans with the promise of "free" services, only to trap them into high-cost contracts. According to the lawsuit, the contracts required veterans to cough up six times the amount of any increase in disability benefits they received after signing, as reported by the Texas Tribune.
Despite the ability of veterans to cancel their contracts with a 30-day written notice, VA Claims Insider demands payment for any benefit hikes they get afterwards or a $5,000 penalty should they fail to report such an increase within a week. Allegations have surfaced, some of which are mentioned in the attorney general's statement, saying the company has also sought sensitive personal details from veterans, including VA account logins, according to the KENS 5 reports. Moreover, the company's advertisements purportedly did not inform potential clients that VA Claims Insider is not accredited by the VA nor can it legally offer claim preparation services, despite the VA having sent a cease-and-desist letter to the firm for possibly illegal conduct.
"It is deeply disappointing that this business took advantage of men and women who have given so much to our country," Paxton said in a press release. The attorney general expressed his dedication to seeking justice for Texan veterans where the opportunity arises. In response to the allegations, VA Claims Insider denies any wrongdoing. “We respectfully disagree with the basis of the lawsuit filed by the Texas attorney general’s office," Jeff Eller, a spokesman for VA Claims Insider, informed the Texas Tribune. "Founded by a veteran to serve veterans, VA Claims Insider is a mission-driven organization and stands behind that mission. We welcome the opportunity to present our case in court."
Since its founding in 2017, VA Claims Insider has risen to prominence in an industry that operates outside of government regulation and accreditation, helping veterans with the complex task of preparing and filing for benefits claims. The Texas Attorney General's office, targeting to protect veterans from such allegedly unscrupulous practices, is seeking damages and pushing for a permanent injunction to halt the company's operations. In the looming court battle, both the state and VA Claims Insider are poised to defend their stances in the eyes of the law and the court of public opinion.
