An act relating to prohibited practices for services involving veterans’ benefits
H.103 creates a new chapter in Vermont law aimed at protecting veterans, their dependents, and survivors from deceptive or unfair practices by people offering help with veterans’ benefits claims. The bill defines “veterans’ benefits matter” broadly to cover the preparation, presentation, or prosecution of claims involving benefits administered by the U.S. Department of Veterans Affairs or the U.S. Department of Defense. It then prohibits a range of conduct, including charging compensation for advice or referrals in most circumstances, charging for services performed before a notice of disagreement, decision review, or appeal is filed, guaranteeing a particular benefits outcome or amount, and falsely claiming affiliation with or accreditation by veterans’ agencies.
The bill also requires anyone seeking compensation for advising or assisting with a veterans’ benefits matter to put the fee arrangement in a written agreement before services begin, and that agreement must comply with federal fee-agreement requirements. In addition, it bars excessive or unreasonable fees and directs decision-makers to consider federal reasonableness factors. Violations are treated as violations of Vermont’s consumer protection law, allowing enforcement by the Attorney General or a State’s Attorney, as well as private rights and remedies under the consumer protection statute. The act would take effect July 1, 2025.
If enacted, H.103 would add a new layer of state regulation over paid veterans’ benefits assistance in Vermont, supplementing federal accreditation and fee rules with state consumer-protection enforcement. It would affect paid claims consultants, referral services, and others who assist with veterans’ benefits matters, while expressly exempting accredited representatives, accredited agents or attorneys, and certain state veterans’ employees acting in their official roles. The bill would also make deceptive veterans’ benefits practices actionable under 9 V.S.A. § 2453, expanding the Attorney General’s and private parties’ enforcement tools.
Based on the bill text and the absence of recorded committee testimony or votes, the overall sentiment appears protective and consumer-focused. The legislation is framed as a safeguard for veterans and their families against misleading promises, unauthorized representation, and unfair fees. There is no documented opposition in the provided materials, but the structure of the bill suggests support for stronger oversight of paid veterans’ benefits services.
The main points of potential contention are likely to center on the scope of the compensation ban, the limits it places on paid assistance, and whether the written-agreement and fee-reasonableness requirements could burden legitimate service providers. Another possible issue is the bill’s broad definition of veterans’ benefits matters and its incorporation of federal standards, which may raise questions about overlap with federal regulation and how strictly state enforcement would be applied. The bill’s exemptions for accredited representatives and certain state employees indicate an effort to distinguish authorized assistance from commercial claims services.