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Stop Claim Sharks From Targeting Disabled Veterans

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Sponsor: The Veterans Site

Disabled veterans should not lose earned benefits to companies posing as help. Congress must stop claim sharks now.

Close-up of a veteran seated in a wheelchair, one hand on the wheel, with an American flag draped across their lap.

Veterans applying for disability compensation often face a complicated VA claims process. That confusion has helped fuel a growing industry of private companies offering claims “help” while charging veterans steep fees or taking a cut of future benefits.

Texas Attorney General Ken Paxton announced in January 2026 that his office secured more than $6.8 million in debt relief for disabled veterans in a lawsuit against VA Claims Insider. The lawsuit alleged the company posed as legitimate veterans assistance while deceptively charging disabled veterans fees for help navigating the VA claims process.1

The company resolved the case without admitting wrongdoing, but the outcome shows how costly this industry can be for veterans. Veterans seeking benefits they earned should not be steered into contracts that drain disability payments meant to support their health, housing, and families.

Claim Sharks Exploit Gaps In Federal Law

MOAA has warned that unaccredited actors are charging thousands of dollars to “help” veterans and survivors with VA claims, and it supports the GUARD VA Benefits Act as a federal solution.2 The War Horse reported that VA issued warning letters to claims companies in prior years, but also found that enforcement gaps remain and that veterans reported hundreds of millions of dollars in fraud losses more broadly.3

States are starting to act. CalMatters reported that California passed a law barring unaccredited private companies from billing veterans for help with VA disability claims.4 But state-by-state protection is not enough when companies operate online, market nationally, and target veterans wherever the rules are weakest.

Congress Must Close The Loopholes

The House Committee on Veterans’ Affairs announced passage of the VSAFE Act in January 2026, aimed at improving VA’s coordination of scam and fraud prevention activities.5 GovInfo also lists the Preventing Crimes Against Veterans Act of 2025, a bill to amend federal criminal law to help prevent frauds against veterans.6

Congress should pass federal legislation that restores penalties for unlawful claims assistance, bans deceptive advertising, requires clear fee disclosures, protects veterans from abusive contracts, and expands access to free accredited help from veterans service organizations, county veterans service officers, and other qualified representatives.

Veterans earned their benefits through service. Those benefits should not become a revenue stream for companies that exploit confusion, disability, or desperation.

Sign now to urge Congress to crack down on predatory claims companies and protect veterans from deceptive fees and abusive contracts.

More on this issue:

  1. Texas Attorney General, Texas Attorney General (23 January 2026), "Attorney General Ken Paxton Secures Over $6.8 Million in Debt Relief for Disabled Veterans Harmed by Fraudulent VA Assistance Scheme."
  2. Jen Goodale, MOAA (10 February 2026), "Stop VA Claim Sharks: Why MOAA Is Taking the GUARD VA Benefits Act to Capitol Hill."
  3. Bethany Barnes, The War Horse (2 December 2025), "VA sent warning letters to veteran disability benefit companies."
  4. Ryan Sabalow, CalMatters (10 February 2026), "California bans fees for help with VA disability claims."
  5. House Committee on Veterans’ Affairs, House Committee on Veterans’ Affairs (20 January 2026), "House Passes Crucial Veteran Scam and Fraud Safety Bill."
  6. U.S. Congress, GovInfo (26 June 2025), "H.R. 4169, the Preventing Crimes Against Veterans Act of 2025."

The Petition

To the Chairs and Ranking Members of the House Committee on Veterans’ Affairs and Senate Committee on Veterans’ Affairs,

I urge Congress to pass strong federal protections against predatory claims companies that target veterans seeking VA disability benefits.

Veterans earned their benefits through service. They should be able to access those benefits through clear, fair, and accredited assistance. Instead, too many veterans encounter companies that market themselves as helpful guides while charging steep fees, taking portions of future benefits, or creating contracts that drain compensation meant for health, housing, and family stability.

A 2026 Texas settlement involving VA Claims Insider required more than $6.8 million in debt relief for disabled veterans. The state alleged deceptive practices involving VA claims assistance. That case should be a warning sign for Congress. Predatory claims practices are not isolated mistakes. They are part of a broader market that exploits confusion in the VA process.

Veterans already have access to free accredited help from veterans service organizations, county veterans service officers, and qualified representatives. But unaccredited companies often advertise heavily, make broad promises, and blur the line between legitimate advocacy and profit-driven exploitation.

Congress should pass legislation that restores meaningful penalties for unlawful claims assistance, bans deceptive advertising, requires clear fee disclosures, protects veterans from abusive contracts, and gives VA and law enforcement the tools needed to stop bad actors. Congress should also expand outreach so veterans know where to find free, accredited claims support.

Veterans should not have to pay thousands of dollars for help they can receive for free. They should not lose portions of disability compensation to companies operating in legal gray areas. They should not be misled while trying to access benefits they earned.

Please act now to protect veterans, survivors, and families from claim sharks.

Sincerely,

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