Veterans and survivors face a growing threat from predatory companies that siphon earned disability benefits under the guise of “help.”

At the center of MOAA’s work to combat this threat is the Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act (H.R. 1732), a bipartisan bill which would restore long-overdue accountability to the VA disability claims process.

[TAKE ACTION: Urge Congress to Stop Predatory VA Claims Agents and Protect Veterans’ Earned Benefits]

A System Built on Trust … and a Dangerous Gap

Federal law is clear: Only VA-accredited attorneys, claims agents, and veterans service organizations (VSOs) may assist veterans with disability claims in exchange for compensation, and no veteran can be charged when filing an initial claim, even by an accredited agent. The law clearly states that accreditation requires training, ethical compliance, continuing education, and fee oversight.

But in 2006, Congress repealed criminal penalties for unaccredited individuals who illegally charge veterans for claims assistance. That decision created a regulatory gap, one that predatory companies have spent nearly two decades exploiting.

VA’s only enforcement tool against these actors is a cease-and-desist letter, a measure that has proven to be largely ineffective. Over the past decade, the VA has issued more than 40 such letters, yet most of the companies who received warnings continue operating, advertising, and charging veterans thousands of dollars in unauthorized fees.

A Perfect Storm for Exploitation

VA disability claims are complex and slow, leaving frustrated veterans searching for help. The passage of the MOAA-supported Sergeant First Class Heath Robinson Honoring Our Promise to Address Comprehensive Toxics (PACT) Act, a critical expansion of benefits for toxic-exposed veterans, dramatically increased the number of new and reopened claims, creating a larger pool of newly eligible veterans vulnerable to exploitation.

[RELATED: The Push for a More Perfect PACT Act]

More than 40 unaccredited companies now actively market themselves as “consultants” or “coaches,” claiming they can maximize ratings or speed decisions. Some charge contingency-style fees totaling tens of thousands of dollars. A veteran awarded a 100% rating can be charged nearly $20,000 for assistance that is legally available for free through accredited VSOs. Other companies charge flat fees for consultations with medical examiners, nexus letters, and other supporting documentation.

These companies are not subject to VA oversight, ethical standards, or fee limits. Veterans report aggressive data-targeted marketing, misleading contracts, and long-term payment obligations tied to future benefit increases … even when the company does no additional work.

One retired Navy petty officer and longtime volunteer advocate described veterans being contacted almost immediately after filing claims by companies falsely implying VA affiliation and armed with detailed, sensitive claim information. This erosion of trust underscores the urgent need for accountability.

Enforcement Works — When It Exists

States have begun stepping in where federal enforcement is lacking. Most recently, the Texas Attorney General successfully prosecuted Vet Claims Insiders, affirming that these practices harm veterans and violate consumer protection laws. But veterans should not have to rely on a patchwork of state actions to protect their federal benefits.

Congress created this enforcement gap, and Congress must work to close it.

What the GUARD VA Benefits Act Does

The GUARD VA Benefits Act restores the enforcement authority Congress originally intended by reinstating criminal penalties for unaccredited individuals who charge unauthorized fees. The bill does not limit veterans’ choices or access to help. Instead, it ensures assistance comes from qualified, accountable, and regulated professionals.

MOAA urges lawmakers to advance this legislation to protect service-earned benefits for veterans and survivors, and to restore integrity to the VA claims system.