Start Up to Capitalize on Government Inefficiency: VA Claims Backlog for Veterans
Many veterans are unable to maintain a stable financial state until the VA approves and begins making payments towards the SMs. Whether it's temporary homelessness, defaulting on loans, or other financial issues--all of which make it difficult to obtain new loans without high interest rates and would require veterans seek other sources of insecure income.
DVG financial capitalizes on government inefficiency, specifically VA claims backlog. Currently there are over 355,000 pending benefits claims by service members, with estimated cash payouts of $3.5 billion w/ 80 percent approval rate. For reference, in FY 2015 VA payed out $63.5 billion in compensation and pensions.
This is where DVG comes in, started by a former airborne paratrooper who read Economics at Vassar. DVG knows that a certain amount of VA claims will be approved, a judgment gained not just from DVG's intimate knowledge of the VA claims process, and because of the draconian nature of government regulations that dictate VA claims, but also because the rate has been around 79 percent. For example: veterans who were medically harmed and sustained disabilities to those waiting for educational and homes benefits to kick in.
Adding another buffer, is the fact that it's very hard to fake military service, or a purple heart, or a house address, or that one is attending school. Additionally, claiming VA benefits requires one to sign government paperwork with clauses for committing a felony if one claims with intent to defraud--and veterans by nature, avoid becoming felons.
VA benefits, which range from hundreds to a few thousands dollars, pay out monthly over a specified amount of time, 12, 24, 36months etc--thus giving a guaranteed amount SMs receive. DVG gives out a temporary loan until VA benefits are approved which take an average of 3-6 months. Once the SMs claims are approved, they pay back the loan monthly. DVG knows exactly the amount of VA benefits the SMs are receiving and thus they're able to make their decisions with good confidence.
I'm a lay person when it comes to VA, but if there are any veterans here please correct me if I got something wrong. This seems unlikely that others may have not caught on to this, but I couldn't find any orgs doing this.
Here's where I ran into this.
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