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Panel Debates Bill to Penalize Unaccredited VA Claims Consultants; Consultants and VSOs Clash
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Summary
The Joint Committee on Veterans and Federal Affairs heard sharply divided testimony over H.3840, a bill to deter predatory, unaccredited agents who prepare VA claims; accredited veteran service officers and a national veterans organization urged enforcement, while private consultants warned the bill may be unconstitutional and urged narrower consumer protections.
Lawmakers heard sharply differing testimony on House Bill 38 40, which would impose state penalties on people and firms that prepare VA claims while falsely presenting themselves as accredited and, as written, could bar compensation for certain non‑accredited consulting services.
Christopher Deary, a long‑time accredited local veteran service officer, told the committee the bill is needed. He described seeing predatory actors who charge thousands of dollars to help elderly veterans file claims for Aid and Attendance and other benefits. "They go to nursing homes and they'll charge 2,000, dollars, 2,500 for people to apply for VA benefits," Deary said. He argued that Massachusetts prosecutors need authority to fine or criminally pursue bad actors who pretend to be accredited.
John Blomstrom, a private veteran claims consultant who said his firm helped more than 600 Massachusetts veterans, testified in opposition. Blomstrom argued H.3840 is overbroad and likely unconstitutional, citing recent federal litigation. He told the committee the United States Court of Appeals for the Third Circuit found in Veterans Guardian v. New Jersey that banning compensation for consulting related to VA benefits likely implicates the First Amendment. He urged the committee to reject the bill as written and to work toward federal accreditation reform and targeted consumer protections instead.
The Veterans of Foreign Wars (VFW) testified strongly against fee‑charging models. A VFW representative said the organization operates nine service officers across the state who provide assistance without charge and warned against "claim sharks" taking a percentage of retroactive awards. The VFW speaker provided figures showing VFW‑initiated power‑of‑attorney claims in Massachusetts generated more than $112 million in benefit payments to veterans in a 12‑month period.
Witnesses on both sides asked the committee to consider several steps: stronger enforcement against false accreditation claims; clearer state‑level consumer protections that complement federal rules; funding and outreach to strengthen free accredited services; and federal reforms to modernize accreditation and oversight.
Committee members asked staff to collect written materials and court decisions cited in testimony and to assess constitutional risks and enforcement options before advancing legislation.
