Congresswoman Bynum introduces SAFEGUARD Veterans Act to protect benefits
(KTVZ) -- U.S. Representatives Janelle Bynum of Oregon, Chris Pappas of N.H., Don Bacon of Nebraska and Mike Lawler of New York introduced bipartisan legislation today in Washington, D.C. The SAFEGUARD Veterans Act aims to crack down on "claim sharks" exploiting veterans and survivors by charging fees for assistance with Department of Veterans Affairs benefits.
The comprehensive legislation seeks to make it explicit that only VA-accredited individuals can assist veterans with their benefit claims. It also reinstates criminal penalties for unaccredited agents who charge what are described as extortionate fees for a service the VA and accredited nonprofits provide for free. While current law prohibits this activity, predatory actors have used loopholes to avoid prosecution and federal agencies have faced limitations in enforcing the law without criminal penalties.
U.S. Rep. Bynum of Oregon's 5th congressional district highlighted the importance of protecting veterans' earned benefits. "Our veterans sacrificed so much to defend us and our freedoms – the least we can do is protect the benefits they earned and deserve," Bynum said. "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."
U.S. Rep. Pappas of New Hampshire's 1st congressional district emphasized transparency and accountability for for-profit claim sharks. "Veterans seeking to access their benefits should not face another battle to do so," Pappas said. "Unaccredited, for-profit companies are scamming veterans of their earned benefits under the guise of helping them and they must be stopped." Pappas noted his collaboration with Sen. Richard Blumenthal, veterans and veterans' service organizations on the issue. Sen. Blumenthal introduced companion legislation for the bill in the Senate.
U.S. Rep. Lawler of New York stressed the need for strong criminal penalties and accessible, free assistance. "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," Lawler said. He added that veterans should never be charged unauthorized fees or misled by companies seeking to profit from their benefits.
U.S. Rep. Bacon of Nebraska described the widespread issue of benefit-assistance companies targeting veterans. "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," Bacon said. He called for stronger protections and real accountability for bad actors who undermine trust in the VA process.
The SAFEGUARD Veterans Act specifically outlines several provisions to address these issues. It would reestablish criminal penalties for unaccredited claims representatives scamming veterans. The legislation also proposes to prohibit the Department of Veterans Affairs accreditation of any person found guilty of unauthorized solicitation, charging or receiving compensation for assisting with VA benefit claims. It further aims to close loopholes exploited by unaccredited actors who skirt federal prohibitions on assisting veterans with claims.
The bill includes measures to prohibit the use of robocall technology to obtain VA claims information, directly targeting claim sharks who spam VA call centers for unauthorized access. The Department of Veterans Affairs would also be required to establish a system to track accredited agents and provide a mechanism for veterans to report scammers. Furthermore, the legislation calls for increasing warnings to veterans about claim sharks and other predatory practices by unaccredited agents.
The lawmakers' legislation builds on previous bipartisan efforts to hold unaccredited entities accountable. It also follows a U.S. District Court for the Middle District of North Carolina summary judgement ruling that determined unaccredited companies are considered agents and are subject to the federal ban on charging veterans for assistance. The SAFEGUARD Veterans Act includes state law preemption regarding recognition, fee agreements or authority to charge for assistance with the preparation, presentation or prosecution of VA benefit claims.
The legislation has garnered support from several veterans' organizations, including the 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. An NPR investigation revealed that private companies continue to make millions by extorting veterans despite knowing their actions are likely illegal.
The SAFEGUARD Veterans Act has been introduced in both the House and Senate for consideration.
