Veterans in Maine may soon have more financial security after a bill providing protection from fraudulent and predatory claims practices initially cleared both the Maine Senate and House. As a veteran myself, I was proud to sponsor the bill, L.D. 2259, to provide increased protection for veterans who are applying for U.S. Veterans Administration benefits.

According to the VA, people or organizations whom they call “claim sharks” use predatory practices aimed at veterans, their families, survivors and caregivers. These practices include aggressive conduct and misleading tactics that often result in hefty fees to “assist” or “consult” veterans and survivors with the filing of their VA benefits claims.

The VA has long said that veterans are never required to pay for the benefits they earned for their military service. During an awareness campaign launched last year, the VA said unaccredited claim sharks have no formal training in the VA system and operate outside the law. Additionally, the VA said scammers target veterans specifically because of their access to benefits and resources.

According to the Federal Trade Commission’s annual data book, veterans reported $350 million in total fraud losses in 2023, up nearly $60 million from $292 million in 2022. Over 74,000 veterans reported some type of loss; and military-related groups including retirees, active duty and National Guard personnel experienced higher rates of fraud than the general population.

So why the sudden surge in claim sharks? The passage of the PACT Act in 2022 was the largest benefit and health care expansion in the VA’s history and now covers veterans who were exposed to burn pits and toxic substances during their service. Since its passage, activity by claim sharks and other scammers has only risen in response.

The sudden spike led to the introduction of competing U.S. House and Senate bills that will reinstate fines and jail time for those who charge veterans for their services. The penalties were suspended during the pandemic to aid the VA to catch up on benefits claims. Both bills have very strong support.

Typical tactics used by such predators often include offering a consultation from their own network of doctors while promising an expedited examination and guaranteeing an increased disability rating or percentage increase to their benefits. Claim sharks then apply hefty fees for their assistance or demand a high percentage of the veteran’s earned benefits.

The problem grew large enough that the VA launched a website to help veterans prevent fraud from happening to them and how to report it and seek help if it occurs. They also have an online tool to aid veterans who are searching for accredited Veterans Services Organizations (VSOs) to help with various services, including filing for benefits.

When the Maine Chapter of the Veterans of Foreign Wars brought this to my attention, I was immediately concerned. The passage of the PACT Act was welcome news for many veterans who are suffering from long-term symptoms that developed after chemical exposure during the Gulf War and other conflicts.

Little did I realize, however, that claim sharks would target the expanded benefits as a potential windfall through predatory and misleading means. The fact that out-of-state firms who aren’t accredited VSOs came to testify against this bill shows just how lucrative this business can be.

My bill will provide an extra wall of security for our veterans, further protecting them from predatory and deceptive practices that target their hard-earned monetary benefits. Veterans should never have to use their benefits to pay for these predatory practices when free help is available.

I thank the Maine chapter for bringing this to my attention. Veterans did their duty for our country and deserve the greatest protections possible. L.D. 2259 now awaits final enactment in both the Senate and House chambers. It is our duty to provide veterans with as much information about VSOs as possible.

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