Senators ask federal officials to look into companies offering products to veterans

A group of Democratic senators called on Wednesday for federal officials to investigate and possibly punish any companies marketing inappropriate financial products and services to older veterans. 

Following a batch of complaints, Sen. Patty Murray (D-Wash.), chairman of the Senate Veterans’ Affairs Committee, along with Sens. Herb Kohl (D-Wis.), Jon Tester (D-Mont.) and Ron Wyden (D-Ore.) are asking the Consumer Financial Protection Bureau to identify and take action against businesses that take advantage of older veterans, especially when it affects long-term care and pension and other federal benefits. 

"We are deeply troubled because such practices may adversely impact eligibility for both VA and other federal benefits, such as Medicaid," they wrote in a letter to CFPB Director Richard Cordray.

They say the financial services and products may involve substantial fees and may not be properly suited for older veterans who use the VA's pension program, which provides monthly benefits to eligible low-income wartime veterans and their surviving spouses. 

They wrote that there are companies that grant veterans deferred payments on assisted living facility costs for either a certain time period or until receipt of VA pension benefits. However, because of how the VA determines pension eligibility, such practices may negatively effect a veteran’s eligibility for pension benefits.  

"Further, some of these companies fail to offer accurate advice on other available benefits, often to the detriment of the veteran or survivor," they wrote. 

They want the CFPB, as well as the Office for Older Americans and the Office of Servicemember Affairs, to gather information on the companies in order to educate older veterans and their families on the companies' practices and to help them better understand the broader benefits offered.