Texas Attorney General Ken Paxton has won a lawsuit against a company accused of misleading disabled veterans by posing as a legitimate helper for navigating federal benefits, resulting in more than $6.8 million in forgiven debts.
The case targeted VA Claims Insider, LLC, which allegedly marketed itself as offering free coaching to assist with preparing, presenting, or prosecuting claims through the U.S. Department of Veterans Affairs. However, the firm lacked VA accreditation for such services and deceptively charged fees, according to the lawsuit.
Paxton’s office further claimed the company misrepresented its cancellation policies, contract details, and the actual costs involved. It also allegedly misled veterans about its ties to a recommended medical provider.
When veterans balked at surprise charges, the firm pursued aggressive debt collection.
“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 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 settlement includes a permanent injunction barring VA Claims Insider from seeking payment from consumers who were tricked into believing the services were free. The company has also agreed to drop collection efforts on eligible debts dating back nine years, amounting to an estimated $6.8 million in relief for affected veterans.