Bacon, Pappas, Blumenthal Introduce New Comprehensive Legislation to Crack Down on Claim Sharks Scamming Veterans

Bacon, Pappas, Blumenthal Introduce New Comprehensive Legislation to Crack Down on Claim Sharks Scamming Veterans

Washington, D.C. - Today U.S. Representatives Don Bacon (NE-02) and Chris Pappas (NH-01) Ranking Member of the Subcommittee on Economic Opportunity of the House Veterans' Affairs Committee, and Senate Veterans' Affairs Committee Ranking Member Richard Blumenthal (CT) announced 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 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.

"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."

"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."

"Veterans need protection against claims sharks and other predatory scammers who are stealing millions in hard-earned benefits," said Senator Blumenthal. "Our legislation will close loopholes and impose strict criminal penalties- deterring as well as punishing bad actors. There should be zero tolerance for exploitive tactics robbing veterans of funds they well deserve and need to live. I hope this measure will have bipartisan backing."

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.

"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."

"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.

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.

In the House, Bacon was joined by Reps. Chris Pappas (NH-01), Janelle Bynum (OR-05), Mike Lawler (NY-17), Eleanor Holmes Norton (DC-AL), Nikki Budzinski (IL-13), Bill Keating (MA-08), Dina Titus (NV-03), Vindman (VA-08), and Jimmy Panetta (CA-19). In the Senate, the SAFEGUARD Veterans Act is co-sponsored by U.S. Senators Angus King (I-ME), Amy Klobuchar (D-MN), Tammy Baldwin (D-WI), Ben Ray Lujan (D-NM), Michael Bennet (D-CO), Sheldon Whitehouse (D-RI), Bernard Sanders (I-VT), Ruben Gallego (D-AZ), Jacky Rosen (D-NM), Mark Kelly (D-AZ), Jeanne Shaheen (D-NH), and Peter Welch (D-VT).

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.

"NACVSO supports the SAFEGUARD Veterans Act of 2026 and its efforts to restore integrity within the VA claims process," said NACVSO President Andrew Tangen. "VA-accredited representatives operate under federal oversight, training requirements, and ethical standards designed to protect veterans, while unaccredited claims agents have increasingly exploited enforcement gaps while profiting from veteran injuries and illnesses. This legislation takes bad profit incentives away from unscrupulous claims agents by restoring criminal penalties for unauthorized assistance, improving transparency, modernizing accreditation oversight, and increasing awareness of predatory practices. No veteran should ever have to pay for initial claim services and those who have illegally profited must be held accountable."

"For too long, unaccredited claims consultants have exploited veterans and survivors by charging excessive, unlawful fees for assistance they are not authorized to provide. The SAFEGUARD Veterans Act restores accountability, strengthens protections for veterans navigating the VA claims process, and reinforces the critical role of accredited veterans service organizations, attorneys, and claims agents who are held to rigorous standards," said MOAA President and CEO Lt. Gen. Brian T. Kelly, USAF (Ret). "MOAA applauds lawmakers for introducing this important legislation to preserve the integrity of the VA benefits system and ensure veterans are not targeted by predatory actors seeking to profit off of service-earned benefits."

"DAV strongly supports the SAFEGUARD Veterans Act to help combat a serious and ongoing threat: unethical individuals who prey on veterans navigating the complex VA claims process and charge fees for help that should be free and accredited. By reinstating criminal penalties for unaccredited claims assistance, streamlining the accreditation process, and making public those who have been barred from VA accreditation, this bill puts teeth back into protections that veterans need, deserve, and have earned. Passage of this legislation would demonstrate our nation's unwavering commitment to honor and protect all who have served because every veteran deserves strong, honest advocacy when seeking earned benefits-not opportunists seeking to profit," said DAV National Service Director Scott Hope.

Background

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. 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.

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