Bipartisan Bill Takes Another Step Toward Protecting Veterans from Predatory Claims Companies

MOAA and other veterans service organizations (VSOs) have warned lawmakers for years about the growing threat posed by unaccredited, for-profit companies charging veterans thousands of dollars for assistance filing VA disability claims — a service accredited VSO representatives, attorneys, and claims agents often provide at no cost.

Multiple court decisions and state enforcement actions have validated those concerns in recent months. That is why MOAA proudly supports the Stopping Abuse, Fraud, and Exploitation by Governing Unaccredited Representatives Defrauding (SAFEGUARD) Veterans Act (H.R. 9105 | S. 4646), bipartisan legislation introduced in both chambers in June that would strengthen enforcement against companies unlawfully charging veterans for claims assistance while operating outside VA's accreditation system.

The legislation builds upon MOAA's long-standing support for the GUARD VA Benefits Act, which would restore meaningful criminal penalties against individuals and organizations that unlawfully charge veterans for assistance with VA claims. Together, these measures represent a comprehensive effort to protect veterans, preserve the integrity of the VA claims process, and ensure veterans receive assistance from qualified, accountable representatives.

Examples of Bad Actors

Recent events demonstrate why congressional action is urgently needed.

In May, a federal judge ruled that Veterans Guardian VA Claim Consulting acted as an unaccredited agent while preparing and presenting veterans' disability claims and charging contingency fees for those services. The court found Veterans Guardian gathered evidence, reviewed records, identified potential claims, completed VA forms, assembled claim packets, and instructed veterans on submitting those claims — activities the court concluded constituted the preparation and presentation of VA disability claims under federal law. The judge further determined Veterans Guardian was not accredited by the VA and therefore violated federal law by charging veterans for those services.

While the case is not fully resolved, the ruling represents one of the clearest judicial findings to date that companies cannot simply rebrand themselves as "consultants" while performing functions reserved for accredited representatives.

State attorneys general have reached similar conclusions.

In January, the Texas attorney general's office announced a resolution with VA Claims Insider, a for-profit, unaccredited claims consultant, that resulted in more than $6.8 million in debt relief for disabled veterans. The company engaged in deceptive practices that left veterans owing substantial fees for claims assistance, according to the office's press release. This outcome demonstrates that states are increasingly willing to pursue enforcement actions when veterans are harmed by misleading business practices.

Likewise, the Arizona attorney general secured a nearly $2 million settlement in May involving VetLink Solutions and related entities. The settlement included restitution for veterans and penalties associated with alleged deceptive practices targeting former servicemembers seeking disability benefits.

A Federal Fix

These cases reveal a troubling pattern. Companies frequently advertise assistance with VA disability claims, charge contingency-based fees tied to a veteran's increased benefits, and operate outside the accreditation framework Congress established to protect veterans and their families. Unlike accredited representatives, these firms are not subject to VA oversight, training requirements, ethics standards, or fee reasonableness reviews.

The SAFEGUARD Veterans Act would help close those gaps.

Among its provisions, the legislation would reinstate civil and criminal penalties for unaccredited individuals who solicit, charge, or receive compensation for preparing, presenting, or prosecuting VA claims. It would clarify that individuals assisting veterans with claims must be accredited by the VA, improve transparency by creating searchable databases of accredited and barred representatives, strengthen warnings about predatory actors, require the VA to collect information about paid claims assistance, and prohibit the use of certain automated systems to obtain veterans' claims information. It also would direct the VA to modernize and improve its accreditation and enforcement infrastructure.

Most importantly, the legislation reinforces a principle MOAA has long championed: Veterans deserve trustworthy, qualified representation when navigating the benefits they earned through service.

The vast majority of accredited VSOs, claims agents, and attorneys serve veterans honorably and professionally. The accreditation system exists to ensure veterans receive competent assistance and to provide accountability when representatives fail to meet established standards. Allowing unaccredited actors to operate outside that system undermines those protections and puts veterans at risk.

The recent court rulings and state enforcement actions make clear that this is not a theoretical problem. Congress has an opportunity to strengthen enforcement, close loopholes, and ensure veterans receive the protection they deserve.

MOAA strongly supports the SAFEGUARD Veterans Act and the GUARD VA Benefits Act, and we will continue working with lawmakers, VSOs, and coalition partners to pass this legislation. Please join us by contacting your elected officials and urging them to support and cosponsor these bills to protect veterans from fraud, abuse, and exploitation.