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Guest Commentary May 29, 2002
Protecting America's Veterans from Financial Exploitation
The Honorable John Breaux
Veterans and their families are entitled to comprehensive benefits for their sacrifices and valor in defending the freedom of all Americans. The Department of Veteran's Affairs spends hundreds of millions of dollars in Louisiana each year to help veterans access quality health care, further their education and buy homes. Veteran's benefits also provide disability and pension payments for families of deceased service people.
Like millions of other Americans, many veterans are reaching retirement age. These veterans look to retirement as an opportunity to spend time doing the things they enjoy most, and their veteran's pensions provide a basic level of financial security.
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Current law prohibits veteran's agencies from paying benefits to anyone other than a veteran, family member or legal guardian. In recent years, however, companies have found ways to circumvent laws protecting veterans benefits, offering instant cash payments in exchange for future pensions or disability pay.
Typically, these companies ask veterans to open a joint bank account in which they deposit their government checks directly, sometimes asking veterans to put up their home as collateral. The companies, having joint access to the account, then makes a withdrawal to pay back the debt. These quick cash scams swindle seniors from receiving valuable military benefits packages for a lump sum payment worth far less, sometimes as low as 30 cents on the dollar. Schemes like these rob veterans of years worth of benefits, and, subsequently, of their hard-earned retirement security.
Having worked diligently to increase funding for veterans health care benefits for retired service people, I am outraged by fraudulent companies attempts to bilk veterans of their benefits. A one-time exchange of money for years of benefits simply does not add up.
The Veterans Benefits and Pensions Protection Act of 2002, which I support, is intended to tighten the rules regarding the assignment of veterans benefits prohibiting access through joint accounts. The bill will prevent creditors from collecting collateral, such as veterans homes, to secure assignment of benefits, and will require stiff fines and jail time for offenders.
For the cost of $15 million, or an annual cost of $1 per veteran, this legislation will provide education programs for veterans to learn more about how to avoid these scams and make wise financial decisions. This is certainly a reasonable price to pay to protect the assets of our veterans and their families.
For more information about how to avoid pension benefit scams, call the Department of Veteran's Affairs inspector general's toll free number at 1-800-488-8244.
John Breaux, a Democrat, is a U.S. Senator from Louisiana. The above commentary has been adapted from a weekly column Sen. Breaux issued, May 10, 2002. To contact him, Click Here.
The above column has been distributed by PoliticsOL.com.
