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Committee advances bill to regulate for‑profit veteran-claims companies after public testimony
Summary
The committee amended and approved legislation placing consumer-protection guardrails on for‑profit companies that assist veterans with VA disability claims; the bill was sent to calendar and rules as amended after testimony from veterans and national advocates.
The House Commerce Committee on March 26 amended and approved a bill aimed at regulating for‑profit companies that assist veterans with Department of Veterans Affairs disability claims.
Sponsor Chairman Moon said the bill preserves veterans' right to choose representation while adding consumer-protection requirements: contingency-only, one-time fees, bans on nonrefundable/upfront fees, mandatory disclosure of free options (county service officers, congressionally chartered VSOs), background checks for employees, prohibitions on overseas call/data centers handling veterans' personal information, and civil and criminal penalties under the Tennessee Consumer Protection Act enforceable by the attorney general.
"This bill preserves a Tennessee veterans' constitutional right to choose their representation while also protecting them from unfair practices by introducing common sense guardrails," Chairman Moon said while describing the bill and an amendment (4247) that rewrote portions of the measure.
Public testimony included extended remarks from Justin Johnson of Collierville, who represents Shelby County and Collierville Veterans of Foreign Wars Post 5066. Johnson told the committee he had heard veterans exploited by unaccredited paid companies who charge fees in exchange for filing claims. "Please do the right thing for our disabled veterans and keep veteran services at no cost," Johnson said.
Peter O'Rourke, president of the National Association for Veterans Rights and a former VA official, also testified in favor of regulatory guardrails but cautioned that not every private company is a bad actor. He said removing criminal penalties at the federal level in 2006 increased the number of accredited representatives able to assist veterans, and he outlined a spectrum of service providers operating in the space.
Committee members asked questions about enforcement and federal interactions. Leader Cochran and others sought clarification about whether the state-level bill would reduce bad actors; O'Rourke said the bill addresses known problematic practices and would help differentiate legitimate providers from fraudsters.
The committee adopted amendment 4247 and voted 19 ayes, 0 noes and 2 present not voting to send House Bill 342, as amended, to the Calendar and Rules Committee.
Ending: The bill, intended to create disclosure and conduct rules for paid veteran-claims assistance, now heads to Calendar and Rules for possible further action.
