Texas Attorney General Ken Paxton has filed a lawsuit against VA Claims Insider, LLC (VACI) for engaging in deceptive trade practices and defrauding veterans who are seeking disability benefits from the U.S. Department of Veterans Affairs (VA).
VACI is a for-profit business that offers memberships to veterans, providing coaching and consulting services to help them obtain disability benefits from the VA. However, the advertisements from VACI have been found to mislead and confuse veterans regarding the actual cost of these memberships. Despite claiming that their services are "free," VACI's 12-page contract includes exorbitant fees. In fact, the company requires veterans to pay VACI six times the amount of any disability increase they receive after signing up. Numerous consumer complaints have detailed how VACI has attempted to force disabled veterans to pay thousands of dollars for services that were not provided or for successful claims that VACI had no involvement in.
While veterans are allowed to terminate the contract with a 30-day written notice, VACI still demands payment for any subsequent increases in disability benefits. Failure to notify VACI of an increase within one week may result in a $5,000 penalty. Furthermore, veterans have reported that VACI specifically requested access to their private information and VA account logins. In addition to these deceptive practices, VACI's advertisements failed to disclose that the company is not accredited by the VA and cannot provide claim preparation services. The VA has also previously sent a cease-and-desist letter to VACI for potentially violating the law.
Attorney General Paxton expressed his disappointment in VACI's actions, stating, "It is deeply disappointing that this business took advantage of men and women who have given so much to our country. I'm proud to advocate for justice for our Texas veterans at every opportunity."
The lawsuit filed by Attorney General Paxton seeks to hold VACI accountable for its deceptive trade practices and to protect veterans from further exploitation. Veterans who have been affected by VACI's actions are encouraged to read the petition filed by the Attorney General by clicking here.
This legal action serves as a reminder that fraudulent practices targeting veterans seeking disability benefits will not be tolerated. The Attorney General's office remains committed to ensuring justice for Texas veterans and will continue to take action against those who seek to defraud them.
To find out more, go to this link: https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-texas-company-defrauding-veterans-seeking-va-disability-benefits