Pappas, Amata, Fitzpatrick, Van Drew Introduce Bipartisan Legislation to Protect Veterans’ Benefits from Predatory Claim Sharks

Yesterday, Congressman Chris Pappas (NH-01), Ranking Member of the Disability Assistance and Memorial Affairs (DAMA) Subcommittee of the House Veterans' Affairs Committee (HVAC), re-introduced the Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act alongside Congresswoman Aumua Amata Coleman Radewagen (AS), Congressman Brian Fitzpatrick (PA-01), and Congressman Jeff Van Drew (NJ-02). This bipartisan legislation 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.

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.

“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. “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. I want to thank Representatives Amata, Fitzpatrick, and Van Drew for partnering with me on this legislation as we work to protect veterans’ benefits from predatory claim sharks.”

“Our Veterans protected us and our freedoms, and now we can help protect them, their families, and their financial futures from being defrauded,” said Congresswoman Amata. “We cannot allow an unprincipled business to sweep up the lion’s share of a Veteran’s benefits. Part of keeping our national commitment is seeing to it that VA benefits go to the Veteran not a middleman. Thank you to Congressman Pappas for his leadership on this priority.”

“For too long, heinous actors have taken advantage of and preyed upon veterans in need of assistance, without consequences, and this practice must end,” said Congressman Fitzpatrick. “Those who served our country are entitled to the benefits offered by the VA, and individuals who attempt to cheat our veterans out of these benefits must be held accountable. I’m proud to join my colleagues in introducing this bipartisan legislation that stands up for our veterans.”

“It is unacceptable that current laws have given unaccredited companies the ability to scam our nation’s veterans when trying to access VA benefits,” said Congressman Van Drew. “Our veterans should not be subject to these harmful and unauthorized tactics, and I am proud of the work my colleagues and I have accomplished in introducing this critical piece of legislation that will protect our veterans from these predatory practices.”

Veterans Service Organizations praised this legislation: 

“The VFW proudly supports this legislation to hold claim sharks accountable for charging predatory fees to VA claimants. If our own accredited service officers illegally charge veterans for claims help, they can be fined or sent to jail. We believe everyone should be held to that same standard and this fundamental consumer protection will weed out those seeking to get rich off of veterans’ earned benefits. We want to thank Representatives Pappas, Amata, Fitzpatrick, and Van Drew for their bipartisan leadership in helping to protect service members, veterans, and their families from claims sharks seeking to prey on them,” said Pat Murray, National Legislative Director, Veterans of Foreign Wars.

"NH VFW fully supports this legislation, we do not need scammers preying on our Heroes. We have had many conversations and have seen first-hand what hardship some Agencies and So-called Law offices have caused to Veterans by illegally charging Veterans wrongfully in completion of benefits paperwork being submitted to the VA. These bad actors need to be held accountable when they break the laws," said Leon Rideout, State Commander, New Hampshire Veterans of Foreign Wars.

“For many of our nation’s disabled veterans, VA disability compensation can be the difference between making ends meet and more severe outcomes such as homelessness. That’s why it’s so vitally important that veterans are properly represented by accredited individuals and institutions when applying for VA benefits. DAV applauds Rep. Pappas for introducing the GUARD VA Benefits Act, which will help ensure disabled veterans receive VA-accredited representation while deterring predatory practices that seek to bilk our nation’s heroes of their earned benefits,” said Joe Parsetich, National Commander, Disabled American Veterans.

“This bill will go further to protect our Veterans from scams from unauthorized vendors charging fees in the beginning process of a Veteran attempting to gain VA benefits, specifically compensation and pension benefits. Further I would like to see these non-accredited agencies be banned from advertising through media sources, as this is where most of our younger Veterans are seen as pray to them,” said Andrew Patterson, NH State Veterans Council Vice Chair, New Hampshire Disabled American Veterans. 

The legislation is also supported 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), Military-Veterans Advocacy, Blinded Veterans Association, National Association of County Veterans Service Officers, National Law School Veterans Clinic Consortium, and the 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 Department of Veterans Affairs (VA) disability compensation benefits.