(Photo: yanalya)
A bipartisan group of lawmakers has introduced new federal legislation to stop unaccredited companies from charging Veterans illegal or excessive fees for help with VA benefits claims.
The bill, called the SAFEGUARD Veterans Act, was introduced on June 2 by U.S. Reps. Janelle Bynum (D-Ore.), Chris Pappas (D-N.H.), Don Bacon (R-Neb.), and Mike Lawler (R-N.Y.). U.S. Sen. Richard Blumenthal (D-Conn.) introduced a companion measure in the Senate.
The legislation targets so-called “claim sharks,” a term used for unaccredited businesses or consultants that offer to help Veterans file VA disability claims while charging large fees for services that are often available for free through VA-accredited Veterans service organizations––such as The American Legion––attorneys, and claims agents.
Under federal law, only VA-accredited representatives are allowed to prepare, present, or prosecute VA benefits claims. However, lawmakers said enforcement has been limited because criminal penalties were removed from federal statute nearly two decades ago.
The SAFEGUARD Veterans Act would restore criminal penalties for unaccredited representatives who charge Veterans for unauthorized claims assistance. It would also prevent violators from receiving VA accreditation, close loopholes, increase warnings to Veterans about predatory practices, establish a system to track accredited agents, and provide Veterans a place to report scammers.
The bill also addresses the use of robocall technology to obtain VA claims information. Lawmakers said some predatory companies have used automated calling systems to access information from VA call centers, identify Veterans who received benefit increases, and then bill them for a portion of those benefits.
Several national Veterans organizations are backing the bill, including The American Legion, the National Association of County Veterans Service Officers, Military Officers Association of America, the VFW, and DAV (Disabled American Veterans).
For California Veterans, the SAFEGUARD Veterans Act would build on protections already created under SB 694, which Gov. Gavin Newsom signed into law earlier this year. Legion-backed SB 694 strengthened consumer protections in California against predatory fees charged to Veterans seeking benefits assistance.
The SAFEGUARD Act would add a federal layer of protection for Veterans, making enforcement more consistent nationwide and creating stronger consequences for claim sharks that operate across state lines, including those that target California Veterans.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.
