A U.S. Army veteran who needlessly spent thousands of dollars is now warning his fellow veterans after signing a high-fee contract with a firm that promised to help him file a claim with the Department of Veterans Affairs.
The passage of the PACT Act led to a spike in predatory companies targeting veterans to access their benefits or submit claims on their behalf, for a fee that can run up to 50% of the settlement, Preston Stewart said.
“There’s so much money at stake,” he added. “These companies are stealing taxpayer money. This is not just a veterans' issue. It affects everybody.”
Stewart, 38, said he was contacted by the firm who claimed it could help restart a failed claim he originally filed with the Department of Veterans Affairs in 2021.
“When I showed interest, I began getting emails, calls and texts,” he said.
Stewart said the firm’s representative was pushy and impersonal and that the contract he was presented with was confusing and had a nearly indecipherable disclaimer.
Because Stewart wanted his benefits, he opted to proceed. He then discovered that the disclaimer gave the company the right to increase his fees anytime his VA disability rating increased, no matter who did the work that caused it to be raised.
“Those fees would equal five times my benefits rating,” he said.
Stewart ultimately canceled his contract with the company. Soon after that, he shared his experience with a friend who works with the Veterans of Foreign Wars.
“He said that I didn’t have to pay for representation when filing a claim with the VA and that it’s illegal to charge a veteran to consult or help them with a claim,” Stewart said.
With the VFW’s help, Stewart said his claim was approved by the VA within a few months. He has posted on Instagram about his experience as a cautionary tale to his fellow veterans.
Stewart said he “got lucky” and that his decision to go with the firm could have cost him thousands of dollars.
“An organization in the government needs to lay out very clearly what these organizations are doing and the damage that’s doing to veterans,” he said.
Now, Stewart has decided to educate other veterans and so they can learn from his mistakes. Among his tips: Only work with VA-accredited representatives and do not sign any contracts.
“Don’t make the same mistake I did,” he urged. “Start your process with an accredited VSO who knows what they’re doing. They’re not going to charge you for that service.”
Reach Julia LeDoux at Julia@connectingvets.com.