Attorney General Ken Paxton Secures Over $6.8 Million in Debt Relief for Disabled Veterans Harmed by Fraudulent VA Assistance Scheme

AUSTIN – Attorney General Ken Paxton secured a victory in his lawsuit against VA Claims Insider, LLC (“VACI”). The lawsuit alleged VACI posed as a legitimate veterans’ assistance organization while deceptively charging disabled veterans fees for what it represented as help navigating the U.S. Department of Veterans Affairs (“VA”) benefits and claims process.

Attorney General Paxton’s lawsuit alleged VACI marketed its services as “free” coaching to assist veterans in the preparation, presentation, or prosecution of VA benefit claims, despite not being accredited by the VA to perform those services. The lawsuit further alleged VACI misrepresented its cancellation procedures and its contract terms, including the true cost of services. It also noted that VACI misrepresented its relationship to its recommended medical provider. Then, if veterans refused to pay unexpected fees, VACI initiated burdensome debt collection efforts against them.

“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.”

Under the agreed final judgment and permanent injunction, VACI is prohibited from collecting any debts incurred by consumers who were misled into believing VACI’s services were free. VACI has agreed to forego debt collection on qualifying debts incurred for the past nine years, which is an estimated total of over $6.8 million in debt forgiveness to disabled veterans.

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