This browser does not support the Video element.
AUSTIN, Texas - On Tuesday, Texas Attorney General Ken Paxton filed a lawsuit against VA Claims Insider, LLC (VACI) for allegedly engaging in deceptive trade practices aimed at defrauding veterans seeking disability benefits from the U.S. Department of Veterans Affairs (VA).
In a press release, Paxton's office states Claims Insider operates as a for-profit entity that sells memberships to provide "education-based" coaching and consulting services to veterans navigating the process of obtaining disability benefits from the VA. However, according to the lawsuit from the AG's office, VACI's advertising is misleading and confuses veterans regarding the actual costs associated with these memberships.
CRIME: North Carolina traffic stop uncovers enough fentanyl to kill 27 million people
VACI uses the word "free" in its promotions, but in their 12-page contract, the company allegedly mentions substantial fees, such as requiring veterans to pay VACI six times the amount of any disability increase they receive after enrolling with the company.
"It is deeply disappointing that this business took advantage of men and women who have given so much to our country," said Attorney General Paxton. "I’m proud to advocate for justice for our Texas veterans at every opportunity."
This browser does not support the Video element.
Combat veteran homelessness: HUD Vash Program
FOX is on a mission to combat veteran homelessness, shedding light on a program that empowers homeless veterans to regain independence and step into their own homes. Consumer reporter Heather Sullivan shares the smart sense behind this initiative.
According to AG's office, consumer complaints state instances where VACI allegedly attempted to force disabled veterans into paying thousands of dollars for services VACI did not provide or for successful claims in which the company had no involvement.
Veterans have the option of ending their contract with a 30-day written notice, says Paxton, but VACI allegedly insists the veterans pay for any subsequent increases in disability benefits. Failure to notify the company of such increases may result in a $5,000 fine in damages, the lawsuit says.
Consumer complaints also detail that VACI sought veterans' private information and VA account logins, officials say.
In addition to these allegations, the lawsuit claims VACI's advertisements failed to mention critical information to potential customers such as the company not being accredited by the VA, they can't provide claim preparation services, and having previously received a cease-and-desist letter from the VA for potential violations of the law.