Bipartisan Support Grows for Pappas Bill to Protect Veterans’ Benefits from Predatory Claim Sharks

This week, the Problem Solvers Caucus - a group evenly split between Republicans and Democrats - endorsed Congressman Chris Pappas (NH-01)’s Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act, which would reinstate criminal penalties for unaccredited claim representatives who charge unauthorized fees while assisting veterans with filing a claim for Department of Veterans Affairs (VA) disability compensation benefits. Pappas is a member of the Problem Solvers Caucus and has been rated among the most independent, bipartisan members of Congress.

“Veterans seeking to access their benefits should not face another battle to do so. Unfortunately, unaccredited, for-profit companies are scamming veterans of their earned benefits under the guise of helping them, and they must be stopped and held accountable,” said Congressman Pappas, Ranking Member of the Disability Assistance and Memorial Affairs (DAMA) Subcommittee of the House Veterans' Affairs Committee (HVAC). “As we continue to implement the PACT Act and expand veterans' benefits, it’s vital we ensure veterans can access these benefits and receive help from representatives that are accredited, engage in transparent and ethical practices, and adhere to VA regulations. My bipartisan GUARD VA Benefits Act would protect veterans and their benefits from predatory claim sharks, and as it continues to gain bipartisan support, I’ll keep fighting to get this important legislation passed.”

Unaccredited claims representatives, or claim sharks, are not subject to VA standards. They strategically advertise their services to avoid regulatory oversight and as a result, may engage in predatory and unethical practices that target veterans and rob them of their VA benefits. Federal laws and regulations prohibit anyone from assisting a veteran in the preparation, presentation, or prosecution of a VA benefit claim, or charging a fee for this assistance, without accreditation from VA's Office of General Counsel. However, VA and other federal agencies are limited in their ability to enforce existing law because explicit criminal penalties were stripped from statute nearly two decades ago. This has contributed to the proliferation of unaccredited claims representatives in recent years. This legislation will discourage for-profit companies from operating outside the bounds of federal law and will give VA and other agencies an additional tool to protect veteran claimants from predatory practices.

The GUARD VA Benefits Act has strong support within Congress and across the veterans community. The House legislation has 214 bipartisan cosponsors and companion legislation has been introduced by Senators Boozman, Blumenthal, Tester, and Graham. It has also been endorsed by Veterans of Foreign Wars (VFW), Disabled American Veterans (DAV), The American Legion, National Organization of Veterans’ Advocates (NOVA), Military Officers Association of America (MOAA), Iraq and Afghanistan Veterans of America (IAVA), Paralyzed Veterans of America (PVA), Vietnam Veterans of America (VVA), Wounded Warrior Project (WWP), AMVETS, National Association of Counties (NACo), Military-Veterans Advocacy, Blinded Veterans Association, National Association of County Veterans Service Officers, National Law School Veterans Clinic Consortium, and National Veterans Legal Services Program.

Background:

In February 2022, Pappas called for and received a briefing from VA on its strategy to raise awareness of and better protect veterans from these predatory practices. In April 2022, Pappas chaired a joint Subcommittee hearing on the Department of Veterans Affairs (VA) Accreditation Program for individuals who assist veterans with VA disability claims. Testimony given at the hearing highlighted the rise of unaccredited disability claims consultants who target veterans for financial exploitation and the importance of reinstating criminal penalties to deter bad actors.

In August 2022, Pappas first introduced the Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act to reinstate criminal penalties for unaccredited claim representatives who charge unauthorized fees while assisting veterans with filing a claim for VA disability compensation benefits. In February 2023, Pappas re-introduced this legislation in the 118th Congress.

In September 2023, Pappas led a call for VA to enforce all existing protections for veterans filing initial claims for disability benefits and request additional tools they need to hold bad actors accountable for scamming veterans. In March 2024, Pappas joined a joint hearing held by the Senate and House Committees on Veterans’ Affairs to hear from Veterans Service Organizations (VSOs) about their priorities for the 118th Congress. During the hearing, the Veterans of Foreign Wars (VFW) applauded Pappas’s GUARD VA Benefits Act, noting it as one of their top priorities, and urged Congress to pass the legislation.