(HARTFORD, CT) – Governor Ned Lamont today announced that he is urging the Connecticut General Assembly to approve legislation he is proposing this session that will enact a new state law protecting veterans against being exploited by for-profit companies that charge exorbitant fees for filing disability claims on their behalf with the U.S. Department of Veterans Affairs (VA).
Commonly known as “claim sharks,” these unaccredited companies solicit veterans with the promise that their services can help them get disability claims approved by the VA. Frequently, these companies wait until after the claim has been approved to notify the veteran that they will be charged fees for this service, sometimes taking a large cut of the veteran’s future disability benefits, which could amount to thousands of dollars.
Claim sharks also expose veterans to fraud and identity theft. Since unaccredited actors do not have access to the VA claim system, some require the veteran to share system logins, passwords, and bank account information so fees can be immediately withdrawn even before the veteran learns claim money has been deposited.
“Veterans deserve the disability benefits they’ve earned, and taking a cut of these benefits for one’s own profit through manipulative schemes is morally wrong and disturbing,” Governor Lamont said. “We need stronger laws that bring transparency to these practices so that veterans can make informed decisions and are able to avoid these kinds of exploitative practices that we’ve seen happening across the country.”
While federal law currently prohibits companies without VA accreditation from charging veterans fees to file disability claims, there are no criminal penalties for violating the law and recent legislative efforts to rein in this profit-driven shadow industry have stalled in Congress.
Governor Lamont is proposing to require more transparency around this practice and obligate these companies to provide veterans with information on all fees prior to beginning their services. Specifically, he is proposing a law that will:
- Require companies that provide these services to notify recipients of all fees in advance of the services being provided and create a written agreement signed by both parties; and
- Require companies that provide these services to explicitly notify veterans in advance that they are not endorsed or affiliated with the VA or the Connecticut Department of Veterans Affairs and that local and federal veteran service organizations may provide this service free of charge. These same notices must also be included in any advertising related to these services.
Attorney General William Tong has also proposed legislation on this topic and is supportive of Governor Lamont’s proposal.
“Applying for VA benefits is free, and accredited, vetted, veteran service officers are available to assist at no cost,” Attorney General Tong said. “Unaccredited, illegitimate services waste veterans’ money and time, and may expose veterans to potential fraud and identity theft. Connecticut veterans cannot afford to wait for federal action – we need strong state accountability and oversight, including real penalties for anyone who abuses the claims process to take advantage of veterans and their families.”
“Governor Lamont and Attorney General Tong, we thank you for taking on this important topic of protecting our veterans and families from claim sharks,” Connecticut Veterans Affairs Commissioner Ronald P. Welch, a retired U.S. Army brigadier general, said. “The Connecticut Department of Veteran Affairs wants to ensure our 146,000, Connecticut veterans and their families are protected against the predatory activities of claim sharks and others not properly accredited to legally represent those that have served our great state and nation. We fully support legislation that holds claim sharks and others attempting to take advantage of our veterans who have service-connected injuries or illnesses accountable for their reprehensible actions.”
“Veterans put their lives on the line for our country, and the last thing they should face is fraud and exploitation when accessing the benefits they’ve already earned,” State Senator Paul Honig (D-Harwinton), co-chair of the legislature’s Committee on Veterans’ and Military Affairs, said. “We won’t stand for bad actors preying on our vets here in Connecticut.”
“Our veterans earned their benefits through service and sacrifice – no one should exploit them for profit,” State Representative Jaime Foster (D-East Windsor, Ellington, Vernon), co-chair of the legislature’s Committee on Veterans’ and Military Affairs, said. “This bill enforces existing federal protections with real accountability, ensuring transparency and safeguarding veterans from predatory claim sharks. I applaud Attorney General Tong for his leadership on this issue and I look forward to working with my colleagues to advance these critical protections.”
Applying for benefits through the VA is free, as is talking to an accredited veteran service officer who can help veterans navigate the process. In Connecticut, the VA operates Veterans Service Offices in all five of its district offices:
- 1st District – Newington Office: (860) 594-6606
- 2nd District – Norwich Office: (860) 887-9162
- 3rd District – Milford Office: (203) 874-6711
- 4th District – Fairfield Office: (203) 418-2005
- 5th District – Waterbury Office: (203) 805-6343
Additional information on accredited Veterans Service Organization representatives, attorneys, and claims agents can be found online at www.benefits.va.gov/vso.
The governor’s legislative proposal is House Bill 6874, An Act Establishing Protections for Veterans From Benefits Claim Sharks. It is currently pending in the Committee on Veterans’ and Military Affairs.
**Download: Fact sheet on Governor Lamont’s proposal to protect veterans’ disability benefits from claim sharks