Public Comments for: HB1268 - Veterans' Services Protection Act; prohibited practices; penalty.
Attached is written testimony in opposition to HB 1268, and in support of alternative legislation HB 398.
Attached is written testimony in opposition to HB 1268, and in support of alternative legislation HB 398.
Attached is written testimony in opposition to HB 1268.
Attached is written testimony in opposition to HB 1268, and in favor of the alternative legislation HB 398.
Attached is written testimony in opposition to HB 1268, and in favor of the alternative HB 398.
Briefing: Veterans' Services Protection Act (HB 1268) Overview The Veterans' Services Protection Act protects Virginia’s veterans from exploitation by predatory individuals known as Claim Sharks—unaccredited actors who charge veterans substantial fees for assistance with benefits claims. These services, when provided through accredited representatives, are free, ethical, and accountable. The Problem Claim Sharks routinely take advantage of veterans by: · Charging exorbitant fees, sometimes as much as 40% of a veteran’s earned benefits in perpetuity. · Promising outcomes they cannot legally guarantee. · Claiming they can expedite claims, which no one outside the Department of Veterans Affairs can do. · Operating without VA accreditation, meaning they are not required to meet any professional or ethical standards. Critically, Claim Sharks do not represent the veteran before the VA. This means: · They are not recognized by the Department of Veterans Affairs as the veteran’s representative of record. · Veterans are left legally responsible for any errors, omissions, or fraudulent information submitted on their behalf. · These mistakes can expose veterans to penalties, overpayment debts, delayed benefits, or denial of claims—with no accountability for the Claim Shark who advised them. In contrast, accredited Veteran Service Officers (VSOs): · Are officially recognized by the VA to represent veterans. · Must meet training, certification, and ethical standards. · And most importantly, are responsible for the claim they prepare. If something is filed incorrectly, the VSO—not the veteran—answers for it, ensuring protection and peace of mind. What the Bill Does House Bill 1268 strengthens protections for Virginia’s veterans by making these predatory practices a violation of the Virginia Consumer Protection Act. The bill prohibits anyone from receiving compensation for: · Preparing · Presenting · Prosecuting · Advising · Consulting · Assisting …with any veterans’ benefits matter before the U.S. Department of Veterans Affairs, the Department of Defense, or the Virginia Department of Veterans Services, unless permitted under federal law. The legislation does not restrict attorneys legally practicing in the United States, as these professionals are not the bad actors exploiting veterans. Broad Support HB 1268 reflects close collaboration with: · Veterans of Foreign Wars (VFW) · Joint Leadership Council of Veterans Service Organizations · Virginia Trial Lawyers Association All partner organizations—including the Trial Lawyers—support the bill and have provided testimony in its favor. Closing HB 1268 ensures that those who served our nation are protected from unethical and unaccredited actors who charge for services that should always be free and safe. We respectfully request the subcommittee’s favorable consideration of this bill to help make Virginia the best state in the nation for veterans. No veteran should have to pay for earned benefits.
VSOs have long expressed concerned over bad actors (e.g., unscrupulous firms, hyperbole-spewing self-appointed “VA claims “experts,” and other predatory charlatans) who promise large disability ratings – whether legitimate or not – in exchange for large fees or a lifetime stream of revenue siphoned from the deserving veteran’s VA disability compensation or pension. Preparing or assisting in a claim while charging for the service and being unaccredited is against the law in accordance with Tile 38 of the US Code. Unfortunately, criminal penalties for such actions were eliminated from United States Code nearly twenty years ago. These firms are not certified and trained by the Veterans Administration. They cannot file for the veteran or see the computer system that tracks the veteran's claim. The veteran files their own claim with "assistance" from the firm and if anything goes wrong, the veteran is solely responsible for the error and could owe the Veterans Administration money. If this action were to be taken by any other actor affecting a consumer it would be considered fraud and be protected by Virginia's consumer protection laws. Delegate Laufer's bill solves the problem by effectively prohibiting these Claim Shark companies from operating in Virginia. The VFW respectfully urges the committee to PASS this essential legislation.
For far too long, unscrupulous firms have been preying on unwitting veterans who are seeking assistance in filing claims with the Veterans Administration (VA). These firms, known as "claim sharks," propose contracts that are beyond the scope of what the VA allows under Federal law; they do not file powers of attorney or fee agreements with the VA as is required for accredited firms who charge allowed fees. Veterans can be duped into signing agreements or guarantees which, often unknown to them, come with fees attached, often in the form of a percentage of a veteran's monthly disability compensation. These claim sharks have asked for sensitive user names and passwords for the veteran's eBenefits or VA.gov accounts, and then may use that information improperly to the detriment of the veteran. The 27 Veterans Service Organizations in Virginia have more than 100 VA accredited representatives who will file these claims at no charge to the veteran. Not one thin dime! What we need is strong legislation that prohibits unscrupulous firms, "claim sharks," from continuing to prey and dupe our needy veterans. Their attempts to do so should result in penalty under law. I ask delegates to pass this bill to stop the predatory practices of claim sharks, once and for all. On behalf of our veterans, I thank you.
Comments Document
Virginia resident Paul Sullivan strongly supports HR 1268 and Delgate Laufer. He is a Gulf War Veteran and national advocate researching criminal claim sharks who illegally assist and then illegally charge Veterans to file VA disability compensation claims. A former Army cavalry scout, Paul served as a deputy secretary for CalVet, and currently serves as a Benefits Advisor for VFW Post 2424 in Waynesboro, VA. In January 2026, Paul briefed VFW benefits advisors about non-VA-accredited companies during VFW's winter meeting in Harrisonburg, VA. Currently, claim sharks steal an estimated one billion dollars per year in VA compensation payments from thousands of our nation's disabled Veterans. Unless and until states and the federal government clamp down on the greedy, criminal sharks, hundreds of thousands of additional Veteran victims will fall prey to the growing cyber crime wave.