TOWSON — A new bill before Congress is taking aim at so-called “claim sharks,” which are unaccredited companies accused of charging veterans illegal or unauthorized fees for help filing VA disability benefit claims.
New bill targets ‘claim sharks’ accused of preying on veterans seeking VA benefits
The SAFEGUARD Veterans Act has been introduced in both the House and Senate. Supporters say it would strengthen oversight, bring back criminal penalties, close loopholes, and require the Department of Veterans Affairs to do more to warn veterans about predatory practices.
For veterans, the stakes can be high.
Andrew Gross is the managing attorney of Guidon Legal, a Towson-based veterans disability benefits appeals firm. His firm helps veterans challenge denied claims and low VA disability ratings.
“A claim shark is a term used by some to describe individuals who are unaccredited and therefore unlicensed to do this work — and who charge fees that are illegal,” Gross said.
Gross said accredited attorneys, agents, and service officers are regulated by the VA. Service officers can help veterans for free. Accredited attorneys and agents can charge fees in certain cases, but those fees are regulated.
Gross tells Your Voice for Veterans Reporter Cyera Williams, the concern is with unaccredited companies that market themselves to veterans as claims consultants, coaches, or educators. He said some charge veterans based on future monthly benefit increases, not back pay recovered from the VA.
“They might get a fee of, you know, $3,000 a month difference times five,” Gross said. “There’s one company charging six times. So you’re talking a $15,000 or $18,000 fee.”
Gross said that fee structure can leave veterans paying thousands of dollars for help they may have been able to get for free through an accredited service officer.
The danger is not just the money veterans pay upfront or over time. In some cases, he said veterans may lose out on back pay they could have been owed for years.
Gross pointed to a case involving another law firm where a veteran rated at 90 percent was pursuing an appeal that could have led to about $25,000 in retroactive benefits. He said the veteran later went with another company, withdrew the appeal, received a higher monthly rating, and paid about $8,000 — but lost the chance to recover that back pay.
“They cut them off from $25,000 in back pay because this company’s entire business model is to look at a multiple of the monthly increase instead of looking at the big picture and making the veteran whole,” Gross said.
There is no public nationwide count of how many veterans have been impacted by claim sharks. But federal officials and veterans advocates say the concern is growing.
The Washington Post reported VA lawyers sent warning letters to 140 unaccredited groups and individuals from 2017 to 2024. The Consumer Financial Protection Bureau has also warned veterans about unaccredited companies offering claims assistance and charging illegal fees.
The SAFEGUARD Veterans Act would:
- Bring back criminal penalties for unaccredited claims representatives scamming veterans
- Close loopholes used by unaccredited actors
- Ban certain robocall tactics used to obtain VA claims information
- Require the VA to track accredited agents and create a way for veterans to report scammers
- Increase warnings to veterans about claim sharks and predatory practices
Gross said the bill could help because current rules lack enforcement.
“Right now, it’s a rule, but the rule has no teeth,” Gross said.
Still, Gross said cracking down on bad actors is only part of the solution. He said veterans also need better access to trusted, accredited help. Veterans can search for VA-accredited representatives through the Department of Veterans Affairs accreditation search tool.
His advice to veterans is simple: start with a service officer.
“Find a service officer. It’s free,” Gross said.
He said veterans should confirm whether anyone helping with a VA claim is accredited before signing paperwork or agreeing to pay a fee. Veterans can search for accredited representatives through the VA’s Office of General Counsel.
Gross said veterans should also be cautious of companies promising a quick fix.
“There are no shortcuts,” Gross said. “The VA is a tough, tough bureaucratic beast sometimes. But there are answers out there.”
