Veterans Benefits Matters - Claim Servicers - Prohibitions and Requirements
Summary
HB267 regulates paid services related to veterans benefits matters and veterans benefits appeals services. The bill defines key terms such as “veterans benefits matter,” “V.A. accredited,” and “compensation,” and then prohibits non-accredited persons from charging for preparing, presenting, prosecuting, advising on, consulting on, or assisting with veterans benefits matters, as well as from being paid for referring individuals for those services. It also bars non-accredited persons from guaranteeing that a veteran will receive specific benefits or a specific benefit level, percentage, or amount.
The bill further requires written fee agreements, signed by both parties, for compensated veterans benefits services and requires those agreements to comply with federal VA rules. It also prohibits charging excessive or unreasonable fees as determined under federal regulation. Violations are treated as unfair, abusive, or deceptive trade practices under Maryland’s consumer protection law, making them enforceable by the Attorney General and subject to civil or administrative penalties. Any penalties collected are directed to the Maryland Veterans Trust Fund.
Impact
HB267 amends the Commercial Law Article and the State Government Article to create a new consumer-protection framework for veterans benefits claim servicers. It repeals the prior advertising and disclosure regime for veterans benefits services and replaces it with broader substantive restrictions on who may charge for these services, what they may promise, and how fee agreements must be structured. The bill also ties violations to the Maryland Consumer Protection Act, expanding enforcement tools and potential penalties, while preserving a funding stream for the Maryland Veterans Trust Fund.
Sentiment
The bill appears to have received strong overall support. It was reported favorably from committee, adopted by the House, and passed third reading with a wide margin of 126 yeas to 11 nays. That voting pattern suggests broad agreement with the goal of protecting veterans from misleading or unauthorized paid claims assistance, though not unanimous support.
Contention
The main policy tension is between consumer protection for veterans and the regulation of private veterans claims businesses. Supporters likely view the bill as preventing misleading guarantees, excessive fees, and unaccredited representation in a sensitive area where veterans may be vulnerable. Potential concerns from opponents or affected businesses would center on limits to paid assistance, the reach of the prohibition on compensation and referrals, and the use of consumer-protection penalties for conduct tied to veterans benefits services. The bill also removes earlier advertising and disclosure provisions, indicating a shift from disclosure-based regulation toward stricter substantive limits.