Army Veteran Claims VA Benefits Error Created $43,000 ‘Overpayment’ Debt

A U.S. Army veteran has claimed Department for Veterans Affairs (VA) benefits errors left him struggling without benefits he was entitled to, leading to $43,000 in “overpayment” debt.

Army veterans discharged under conditions other than dishonorable are entitled to a comprehensive suite of VA benefits, including education assistance, home loan guaranties and health care.

VA disability compensation is a monthly, tax-free monetary payment designated for veterans who sustained injuries or contracted illnesses during active duty, active duty for training, or inactive duty training. This coverage spans physical conditions like chronic back pain and hearing loss, alongside mental health struggles such as PTSD.

Ret. Army Staff Sgt. Nicholas Ocampo, who was deployed in Iraq and Afghanistan and has a 100% disability tied to his service, told ABC 15 in Arizona about two separate errors that left him needing to advocate for his benefits.

A VA spokesperson told ABC 15: “VA terminated Mr. Ocampo’s benefits at the end of July based on incorrect data that said he returned to active duty.” The VA added that his benefits had been restored and that it regretted the error.

Ocampo reached out to the VA and local politicians again to resolve the issue, reaching a solution after speaking to ABC 15.

Military.com reached out to the VA for additional comment.

What Led to Ocampo’s Debt

Ocampo told ABC 15 that when he tried to claim VA education benefits in October 2025, 20 days after leaving the service, the VA told him he didn’t have any benefits and that he wasn’t retired despite him holding certificates to show otherwise.

“The VA just left me pretty much on the doorstep,” Ocampo said, adding that the VA told him to instead call his congressional representative for help.

Ocampo said that the VA previously gave him more than $4,1000 a month but then cut him off.

“Everything was canceled on the spot,” he said. “So, I lost all my education benefits and then my compensation benefits for disability.”

Ocampo spent months submitting paperwork to prove to the VA that there had been an error, but it proved fruitless.

“That battle was every day for weeks and months,” he said.

After four months, the issue was resolved. But then in July 2026, the VA sent a letter stopping his VA compensation again, claiming Ocampo returned to active duty after the VA previously gave him benefits in 2025. They claimed Ocampo then owed $43,000 in overpayment debt for these benefits.

​President Donald Trump recently signed an executive order requiring the Defense Department and the VA to share military records faster, a change the VA projects could cut disability-claim processing times for recently separated service members by 20 to 30 days.