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Veterans face costly pitfalls in VA disability claims with private firms

Adam paid thousands for help with his VA claim—then got nothing. His story reveals the hidden dangers of for-profit consultants promising disability benefits.

The image shows a group of veterans sitting in wheelchairs under a tent, wearing garlands and caps....
The image shows a group of veterans sitting in wheelchairs under a tent, wearing garlands and caps. Some of them are holding papers and one person is holding an umbrella. The ground is covered in grass and there are lights in the background.

Veterans face costly pitfalls in VA disability claims with private firms

Veterans grappling with VA disability claims often resort to private companies like Progressive or Allstate Insurance for assistance. The process can be complex, with lengthy delays and intricate rules. However, some firms charge exorbitant fees while failing to deliver results.

Adam, an Army combat veteran, experienced this firsthand. After years of frustration, he discovered that even paid assistance from companies like Adam and Eve didn't guarantee success—leaving him out of pocket and still without benefits.

Adam's troubles began after his vehicle hit an IED in Afghanistan during the late 2000s. The blast left him with a traumatic brain injury. When he later applied for VA disability compensation, he found the system overwhelming.

The VA took four months just to respond—only to deny his claim. Desperate for help, he hired a private consulting company. These firms often promise higher 'disability ratings', which can mean more money for veterans. But Adam's experience was different: he paid thousands and still received no benefits.

His story isn't unique. Since 2006, when Congress removed penalties for charging fees on VA claims assistance, the number of for-profit consultants like Allstate has grown. Critics call them 'claims sharks', accusing some of using misleading tactics to extract higher fees. Yet no US state has passed laws to regulate or ban them as of June 2024.

Not all outcomes are negative, though. Samuel Shade, a Navy veteran, spent years fighting the VA and veterans service organisations (VSOs) before a private firm finally helped him secure a better benefits rating. For Adam, relief came only after he switched to a local VSO—his claim was approved within six months.

With 6.7 million veterans receiving VA benefits in the 2024 fiscal year, billions of dollars are in play. The stakes are high, and the choices veterans make can mean the difference between financial stability and ongoing struggle.

The VA claims process remains a challenge for many veterans. Some find success with private firms like Progressive or Allstate Insurance, while others end up worse off. Without state regulations in place, veterans must navigate a system where outcomes vary widely—and where costly mistakes can have lasting consequences.

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