Veterans Benefits Matters – Claim Servicers – Prohibitions and Requirements
Summary
SB 928 regulates paid assistance with veterans benefits matters in Maryland. The bill defines “veterans benefits matter” broadly to include claims and appeals involving federal, state, or local veterans benefits administered by the U.S. Department of Veterans Affairs or Department of Defense. It prohibits a person who is not VA-accredited from charging compensation for preparing, presenting, prosecuting, advising on, consulting on, or assisting with a veterans benefits matter, and also bars non-accredited persons from being paid for referrals related to those services. The bill further prohibits non-accredited persons from guaranteeing that a veteran will receive specific benefits or a specific benefit level, percentage, or amount.
The bill also requires anyone seeking compensation for veterans benefits services to use a written fee agreement signed by both parties and to comply with federal criteria governing such agreements. It bars 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 the penalties available under Title 13 of the Commercial Law Article. Any civil or administrative penalties collected are directed to the Maryland Veterans Trust Fund. The bill takes effect October 1, 2025.
Impact
SB 928 would amend Maryland’s Commercial Law and State Government articles to create a new consumer-protection framework for veterans benefits claim services. It expands the list of unfair, abusive, or deceptive trade practices to include violations of the new veterans benefits matter restrictions, and it replaces prior veterans benefits advertising/disclosure provisions with a more direct prohibition on unaccredited paid claims assistance. The measure primarily affects paid claim servicers, veterans, and their families, while preserving the role of VA-accredited representatives and free services offered by the Department and accredited veterans service organizations.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of floor or committee sentiment. Based on the bill’s structure, the measure appears intended to protect veterans from misleading paid claims assistance and to steer them toward accredited or free resources, suggesting a consumer-protection and veterans-advocacy rationale. The absence of recorded opposition or amendments in the provided materials leaves overall sentiment indeterminate, though the bill’s stated purpose is clearly protective rather than punitive.
Contention
The main point of contention is likely the scope of the restrictions on non-VA-accredited claim servicers, especially the ban on compensation for assistance, referrals, and guarantees about outcomes. Supporters would likely view these provisions as necessary to prevent predatory or misleading practices and to ensure veterans receive accurate guidance. Potential critics may argue that the bill limits private market participation, could restrict access to paid assistance, or may be difficult to distinguish from permissible services under federal law. The repeal of prior advertising and disclosure requirements in favor of broader prohibitions may also be a point of debate.