Texas Attorney General Ken Paxton announced that his office has shut down VA Claims Insider, LLC, a company accused of targeting disabled veterans seeking help with VA benefits. The lawsuit ended with an agreed final judgment and permanent injunction barring the company from deceptive practices that left veterans in debt, according to his office.
The scheme, as outlined by the Attorney General's office, involved VACI masquerading as a legitimate veterans' aid organization. They marketed their services as free coaching to aid veterans in navigating the complex world of VA benefit claims. However, VACI was not accredited by the VA to offer such services, a detail omitted in their pitches to potential clients. Paxton's lawsuit revealed that VACI also misrepresented their cancellation procedures and the true cost of the services they were purportedly providing.
Furthermore, when veterans resisted or refused the unexpected fees, VACI was quick to initiate aggressive debt collection efforts, further burdening those they had promised to help. "Disabled veterans are our nation's heroes who put their lives on the line for our country, and no company will be allowed to pose as a legitimate VA service in order to scam and deceive them," said Attorney General Paxton. "This judgment ensures that disabled veterans are protected from VACI’s fraudulent VA assistance scheme and will not be held responsible for illegitimate debts."
The debt forgiveness totals more than $6.8 million and covers obligations accumulated over nine years. VACI also agreed to stop collecting on the qualifying debts after veterans were misled by claims of free assistance. The attorney general’s office said the judgment is intended to deter similar schemes.
