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

Today Congressman Chris Pappas (NH-01), Ranking Member of the Economic Opportunity (EO) Subcommittee of the House Veterans' Affairs Committee (HVAC), re-introduced the Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act alongside Congressmen Brian Fitzpatrick (PA-01) and 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. “In light of the Trump administration’s firing of over 2,400 VA employees so far, it’s more critical than ever that we ensure veterans can access their benefits and receive help from accredited, transparent representatives without being taken advantage of by for-profit claim sharks who may see understaffing at VA as an opportunity to double down on their shady business practices. I’m glad to work alongside veterans, veterans’ service organizations, and my colleagues, Representatives Fitzpatrick and Van Drew, to introduce this bipartisan legislation, and will continue fighting to get it across the finish line.”

“For too long, predatory individuals and businesses have taken advantage of our veterans, exploiting those who served honorably without facing consequences,” said Congressman Fitzpatrick. “Our veterans sacrificed for our freedoms and deserve the benefits and care they were promised. It is disgraceful that bad actors have defrauded them, stealing what they rightfully earned. Our bipartisan Guard VA Benefits Act will put a stop to these abuses, ensuring those who prey on our veterans are held fully accountable. This is about justice, accountability, and keeping our promise to our heroes who have served.”

“Our veterans put everything on the line for this country, and they should never be exploited when trying to access the benefits they rightfully earned,” said Congressman Van Drew. “For too long, predatory companies have taken advantage of loopholes to scam veterans out of their hard-earned benefits. This bill will finally hold them accountable and ensure our heroes get the support they deserve. I am proud to stand with my colleagues in fighting to protect our veterans.”

“VA-accredited organizations like DAV exist to help our nation’s heroes obtain their earned benefits at no cost. However, some unaccredited companies charge disabled veterans exorbitant fees for assistance with their VA benefits claims—bilking them out of what they have rightly earned through their military service. DAV thanks Rep. Pappas for re-introducing and championing the GUARD VA Benefits Act, which aims to deter these predatory practices and institutes criminal penalties for those who seek to take advantage of our nation’s heroes during their most vulnerable times,” said DAV National Service Director Jim Marszalek.

“The VFW strongly supports the GUARD VA Benefits Act, which would protect veterans from having their earned benefits stolen. This bill simply reinstates the criminal penalty for breaking the law and is good public policy. The VFW is grateful to Representative Pappas for his leadership on this issue, and we look forward to working with him to get this passed into law,” said VFW National Legislative Director Pat Murray.

Pappas has been working to raise awareness of and protect veterans from the predatory practices of claims sharks since 2021, calling on VA to improve awareness, chairing an oversight hearing on the topic, and introducing the GUARD VA Act in both the 117th and 118th Congresses.