Veterans groups press Nevada lawmakers to curb 'claim sharks'; private assistance providers urge consumer-choice protections

Representatives of Disabled American Veterans, Veterans of Foreign Wars, American Legion and other congressionally chartered veterans service organizations told the interim committee they want state measures to stop unaccredited, for-profit consultants from charging veterans for initial Department of Veterans Affairs claims work.

"Veterans should not have to pay for future benefits," Candace Lopez, Department of Nevada state commander of the Veterans of Foreign Wars, said in testimony describing what she and other VSOs call "claim sharks." Lopez cited examples where for-profit consultants allegedly charged thousands of dollars for assistance with initial claims and urged that anyone preparing initial claims should be accredited by the VA or face state-level accountability when permitted by law.

Fred Wagger, who organized VSO presenters, and other speakers described a package of priorities developed at recent veterans symposiums: Gold Star family benefits such as free park access, veteran-affiliated license plates, expansion of veterans treatment courts, employment incentives for hiring veterans, and stricter enforcement or state-level accreditation requirements for initial-claims preparers. Wagger summarized VSO coordination across national, state and local structures and said the advocacy work flows from national policy threads down to state chapters.

Not all public commenters agreed on a single approach. Representatives from Veteran Benefits Guide, a private firm that assists veterans with claims, urged the committee to preserve consumer choice and warned of legal risks for states that attempt to bar nonaccredited providers. Their attorney noted ongoing federal-court litigation in multiple circuits addressing whether state restrictions on who may assist veterans with claims implicate First Amendment and preemption issues.

Committee members and speakers agreed on the problem statement — that veterans need trustworthy help — but not on a single legal fix. Several VSOs repeated that federal law already requires accreditation to represent veterans before the VA and recommended the committee explore ways to ensure anyone charging veterans for initial claims either becomes accredited or is otherwise constrained by enforceable standards.

What’s next: VSOs said they will bring draft legislative language. Legal commenters urged the committee to review active court rulings before proposing statutes that could be preempted or generate litigation.