Today, U.S. Representatives Janelle Bynum (OR-05) and Chris Pappas (NH-01) introduced their new comprehensive legislation to hold claims sharks and other predatory actors accountable for exploiting veterans and survivors’ earned Department of Veterans Affairs (VA) benefits. The bill was also co-led by Reps. Don Bacon (R-NE) and Mike Lawler (R-NY).

The lawmakers’ Stopping Abuse, Fraud, and Exploitation by Governing Unaccredited Representatives Defrauding (SAFEGUARD) Veterans Act would make explicit that only VA-accredited individuals can assist veterans with VA benefit claims and reinstate criminal penalties for unaccredited agents who charge veterans extortionate fees for assistance with VA disability claims – a service provided for free by VA and accredited nonprofits. While current law prohibits this activity, predatory actors have used loopholes to avoid prosecution and federal agencies are limited in their ability to enforce the law without criminal penalties.

"Our veterans sacrificed so much to defend us and our freedoms – the least we can do is protect the benefits they earned and deserve," said Congresswoman Bynum. “I am proud to introduce the bipartisan SAFEGUARD Veterans Act to crack down on claim sharks preying on veterans and taking their benefits. Let's pass this bill and ensure our heroes in need of assistance can access it without the risk of being scammed.”

“Veterans seeking to access their benefits should not face another battle to do so. Unaccredited, for-profit companies are scamming veterans of their earned benefits under the guise of helping them and they must be stopped,” said Congressman Pappas. “This legislation is about transparency for veterans so they know the resources and help available to them when they apply for benefits, and accountability for for-profit claim sharks that are breaking the law and exploiting legal loopholes to defraud them. I’m glad to be working with Senator Blumenthal, veterans, veterans’ service organizations, and colleagues on both sides of the aisle on this issue. I won’t stop fighting to reinstate criminal penalties on these illegal business practices and safeguard the benefits veterans have earned.”

“We must reinstate strong criminal penalties for bad actors who illegally charge veterans for VA claims, while requiring accredited or supervised representation, strengthening enforcement, and expanding outreach so veterans can access free, trusted assistance. Veterans who served our country should never be charged unauthorized fees or misled by companies seeking to profit off the benefits they earned,” said Congressman Lawler.

“In recent years, numerous complaints have been raised about benefit‑assistance companies that target veterans with aggressive marketing practices, charge unauthorized or excessive fees, and provide misleading information about VA benefits. No veteran should be taken advantage of while trying to access the benefits they earned serving our country,” said Congressman Bacon. “These concerns underscore the urgent need for stronger protections and real accountability for bad actors. Predatory claim sharks undermine trust in the VA process and can leave veterans paying unauthorized fees for help they should be able to receive from accredited representatives. I’m grateful to work with Rep. Pappas on the SAFEGUARD Veterans Act to strengthen consumer protections, restore real consequences for bad actors, and make sure veterans know where to turn for trusted help.”

The SAFEGUARD Veterans Act would:

• Reestablish criminal penalties for unaccredited claims representatives scamming veterans;
• Prohibit VA accreditation of any person found guilty of unauthorized solicitation, charging, or receiving compensation for assisting with VA benefit claims;
• Close loopholes exploited by unaccredited actors to skirt federal prohibitions on unaccredited agents assisting veterans with VA benefit claims;
• Prohibit the use of robocall technology to obtain VA claims information—targeting claim sharks who spam VA call centers to gain unauthorized access to veterans’ claims information;
• Require VA to establish a system to track accredited agents and where veterans can report scammers; and
• Increase warnings to veterans about claim sharks and other predatory practices of unaccredited agents.

The lawmakers’ legislation builds on bipartisan efforts to hold unaccredited entities accountable and a NPR investigation that revealed private companies continue to make millions by extorting veterans, despite knowing their actions are likely illegal. It also comes on the heels of a U.S. District Court for the Middle District of North Carolina summary judgement ruling that unaccredited companies are considered agents and are subject to the federal ban on charging veterans for assistance with preparation, presentation, and prosecution of claims for VA benefits. Some states have passed legislation authorizing the practice of charging for assistance with VA claims. The SAFEGUARD Veterans Act includes state laws preemption regarding recognition, fee agreements, or authority to charge for assistance with the preparation, presentation, or prosecution of VA benefit claims.

The legislation is also supported by National Association of County Veterans Service Officers (NACVSO), Military Officers Association of America (MOAA), the Veterans of Foreign Wars (VFW), Disabled American Veterans (DAV), and The American Legion.

Read the full text of the bill HERE.

The legislation was also introduced in the Senate by Senator Richard Blumenthal.

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