Predatory Claims Companies Are Draining Veterans' Hard-Earned Benefits

Split image showing a man with a prosthetic leg seated on steps beside a veteran receiving support from a woman during a conversation.

The VA claims process can be difficult to navigate. Veterans may need records, medical evidence, forms, appeals, deadlines, and guidance. That complexity has created an opening for private companies that promise help, but sometimes charge veterans steep fees for assistance they could receive free from accredited representatives.

In January 2026, the Texas Attorney General announced more than $6.8 million in debt relief for disabled veterans in a lawsuit involving VA Claims Insider. The state alleged that the company posed as legitimate veterans assistance while deceptively charging disabled veterans fees for help with VA benefits claims.

The company resolved the case without admitting wrongdoing. But the settlement shows how much money can be at stake when veterans enter contracts tied to disability benefits.

A seated veteran listens as a woman in a white coat offers support, resting a hand on his shoulder during a conversation.

Veterans should not be charged abusive fees for earned benefits.

Claim Sharks Thrive In Legal Gaps

MOAA warns that unaccredited actors are charging veterans and survivors thousands of dollars under the guise of help. The organization supports the GUARD VA Benefits Act to protect earned benefits and restore integrity to the VA claims system.

The War Horse reported that VA had sent warning letters to claims consulting companies in prior years. The report also found that enforcement gaps remain, and that veterans continue to face scams and misleading practices.

Some states are moving. CalMatters reported that California passed a law prohibiting unaccredited private companies from billing veterans for help with VA disability claims. But veterans need protection no matter where they live.

Close-up of a veteran seated in a wheelchair, one hand on the wheel, with an American flag draped across their lap.

Claim sharks exploit confusion in the VA system.

 

Congress Must Protect Earned Benefits

Congress has tools on the table. The House Committee on Veterans’ Affairs announced passage of the VSAFE Act in January 2026 to strengthen coordination around scam and fraud prevention. GovInfo also lists the Preventing Crimes Against Veterans Act of 2025, which would amend federal law to help prevent frauds against veterans.

A healthcare worker checks an older veteran’s blood pressure while they sit together outdoors on a bench.
Veterans earned every dollar of their benefits.

Congress should pass strong protections that ban deceptive claims advertising, require clear fee disclosures, restore penalties for unlawful claims assistance, and protect veterans from abusive contracts. It should also expand access to free accredited help through veterans service organizations, county veterans service officers, and qualified representatives.

Veterans earned their benefits. Those benefits should not be siphoned away by companies exploiting confusion and disability.

Sign the petition to urge Congress to stop predatory claims companies and protect veterans’ earned benefits.

Matthew Russell

Matthew Russell is a West Michigan native and with a background in journalism, data analysis, cartography and design thinking. He likes to learn new things and solve old problems whenever possible, and enjoys bicycling, spending time with his daughters, and coffee.

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