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Veterans concerned about legislation to regulate claim shark companies

Legislation in General Assembly would limit how much companies can charge
Veterans concerned about legislation to regulate claim shark companies
Doug Hoffman
Bob Gregory
Posted

NORFOLK, Va. — Veterans in Hampton Roads are concerned about legislation in the Virginia General Assembly to regulate businesses that help veterans file disability claims with the VA.

“In my case, it was basically $6,000 up front," veteran Bob Gregory said, referring to the money he spent working with a company.

That $6,000 is what Gregory paid the company, thinking the company would be able to get him a 100 percent disability rating from the VA. Unfortunately, the company couldn’t make that happen.

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"After I figured out they weren’t going to do too much for me other than what they had already done, I just paid the $6,000 and walked away," Gregory recalled.

Companies like that are what are often referred to as claim sharks. They tell veterans they can get them money for their claims faster than if they use a nonprofit, government-approved Veterans Service Organization, or VSO.

The VSOs do the work for free. When asked if he regrets paying thousands of dollars instead of working with a VSO, Gregory said "absolutely."

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Virginia State VFW Commander Doug Hoffman said the companies are operating illegally per federal law.

“They’re breaking two different laws, charging and not being accredited,
" Hoffman explained.

Another problem is the companies get a portion of whatever money the veteran gets from the VA and the companies don’t bare any responsibility for the claims once they’re filed. Hoffman says in some cases, veterans have been accused of fraud because the company had them submit claims for things they weren’t qualified for.

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VSOs, on the other hand, do bare responsibility for the claim. If something is wrong with the claim, the VSO is liable, not the veteran.

As of February 20, there was legislation going through the General Assembly to restrict how much companies can charge, but Hoffman, Gregory, and other veterans don't support it.

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"You can’t regulate something that’s against federal law. Yes, it is putting regulations in place, but how far are you going to go. They’re still breaking federal law. I would like to see every veteran get their claim done by an accredited agent and not be charged," said Hoffman.

He said there has been legislation filed the past few years to prevent claim sharks from operating in Virginia, but each time the legislation has been killed.

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