Although VA is required by law to assist claimants in obtaining the evidence necessary to substantiate a claim for benefits, accreditation helps ensure that claimants have access to qualified representation. By law, only individuals accredited by VA can represent claimants in the VA claims process. Table 1 below describes the three types of individuals that VA recognizes as accredited representatives. To implement accreditation, the law and VA regulations set forth a number of requirements representatives must meet. For example, representatives must: Be of good character: Although what constitutes good character is not specifically defined, VA regulations provide, with respect to agents and attorneys, that evidence showing a lack of good character and reputation may include such things as: conviction of a felony or other crimes related to fraud, theft, or deceit; or suspension or disbarment from a court, bar, or government agency on ethical grounds. In addition, all representatives are required to be truthful in their dealings with claimants and VA. Provide competent representation: Representatives must provide competent representation, which includes the knowledge, skills, thoroughness, and preparation necessary for representation, as well as an understanding of the issues of fact and law relevant to the claim. Provide prompt representation: Representatives must act with reasonable diligence and promptness in representing claimants. This includes responding promptly to VA requests for information or assisting a claimant in responding promptly to VA requests for information. As of May 2013, VA had on its rolls approximately 20,000 individuals who are accredited to represent claimants. Specifically, VA had accredited 8,207 VSO representatives, 11,568 attorneys, and 345 claim agents. Available data demonstrate the growing role and importance of accreditation. Since current program rules were adopted in mid-2008, the number of applications VA received has grown from 2,696 in 2008 to over 5,000 in each year since. Additionally, almost 80 percent of claims that were open as of November 2012 used the services of a representative, with VSOs accounting for the bulk of those claims (see fig. 1). VA’s Office of General Counsel (OGC) oversees the accreditation program. To this end, OGC staff review accreditation applications and make approval decisions, monitor whether accredited representatives meet ongoing program requirements, and investigate issues and complaints that could lead to a representative having his or her accreditation cancelled or suspended. Table 2 describes the initial and ongoing requirements for these representatives. Additionally, OGC staff receive and review fee agreements—contracts between claimants and representatives outlining how claimants will be charged for services. Within VA, the Veterans Benefits Administration (VBA) also plays a limited role in enforcing accreditation rules—checking that individuals are accredited when claimants designate them as their representative. In cases where an individual is not accredited, VA policy is to inform the would-be representative of accreditation program rules and prohibit the individual from serving as the representative for that claim. VA rules also govern the fees that each type of representative can charge claimants. VSO representatives are required to provide their services free of charge. Attorneys and claim agents may not charge claimants for services related to the initial preparation and filing of their claims, but can charge fees for any services rendered after VA makes an initial decision on a claim and the claimant initiates an appeal of VA’s decision.services rendered after an initial decision is made and an appeal is initiated, VA rules generally allow attorneys and agents to charge a For reasonable fee based on retroactive benefits that are awarded. Fees that do not exceed 20 percent of any retroactive benefits are presumed to be reasonable. VA’s OGC may cancel accreditation if the representative fails to meet any of the requirements for accreditation, knowingly presents a fraudulent or frivolous claim, or demands or accepts unlawful compensation. OGC may also suspend and reinstate the individual if he or she meets conditions for reinstatement. Additionally, a VSO can request that VA suspend or cancel accreditation for one of its representatives based on misconduct or lack of competence. OGC is required to inform representatives of the nature of their alleged violation and representatives may request a hearing on the matter. An OGC decision can be appealed to the Board of Veteran’s Appeals. For four of these individuals, VA received complaints alleging these same individuals charged non-allowable fees for filing claims. Of the 21 individuals we conducted background checks on, 10 of them had complaints against them on file with VA. The remaining 11 individuals were selected from our sample of 92 attorneys and agents accredited in 2012. We were able to obtain information on 20 of the 21 individuals in our sample. acknowledged that additional background information, particularly on agents who are also financial planners, would be useful in informing VA’s judgment of their character. Subsequent to our May 2013 exit briefing with VA, OGC officials informed us that they recently gained access to VBA’s system to conduct background searches and are developing plans to conduct comprehensive background checks on all claim agent applicants and on attorney applicants as necessary. The official that oversees accreditation also stated that VA is considering requiring applicants to supply information on any professional certifications they hold and confirming this information with agencies like the Financial Industry Regulatory Authority, which regulates brokers’ activities. Not consistently following up on references: VA may be missing opportunities to obtain additional information about applicants by not consistently following up on character references. While attorneys and agents are required to provide references in their accreditation applications, the official who oversees accreditation told us that VA contacts references only for agents, which we verified in our review of applications. Further, the value of reference letters VA receives is questionable as VA did not use a standard set of questions or guidance to obtain specific information that should be included in reference letters, such as requesting information on the agents’ criminal or employment history. Several reference letters we reviewed did not provide substantial information on applicants’ ability to assist veterans. In one instance, VA had to request additional reference letters for an applicant because two of the applicant’s reference letters were from members of the same church group and had identical language. Additionally, we found several instances where references listed in applications were family members or lived at the same address as the applicant, calling into question the impartiality of the information received. At our May 2013 exit briefing with VA, officials announced that VA has revised and will begin using a standardized letter to references to specifically request information on agents’ criminal and employment histories, as well as their interest in serving veterans. Reliance on VSOs and state bars: OGC officials told us that they rely heavily on the judgment of VSOs when deciding whether to accredit their prospective representatives. OGC officials told us that they believe VSOs do a good job of screening their applicants and that it is in the best interests of VSOs to maintain a positive reputation regarding the quality of representation they provide as VSOs depend on contributions from veterans to fund their operations. That said, VA does not actively review VSO certification plans and therefore cannot know whether there is variability in procedures and standards among organizations. Regarding attorneys, VA generally presumes good character and fitness to represent claimants if they have a state bar membership in good standing. However, our work shows that an attorney’s standing with a state bar may not always be a sufficient proxy for good character. In one example, an attorney was in good standing with his state bar, but he had several previous suspensions from the bar and multiple felonies in his criminal record involving theft or misappropriation of property or funds. In this instance, VA chose not to accredit the individual based on his self- reported criminal record, but it is not clear what the outcome would have been had VA relied on his bar membership status in the absence of such self-reported information. Limited ongoing monitoring: Once representatives become accredited, VA does little to ensure that they retain good character. VA requires attorneys and agents to annually certify that they are in good standing with any court, bar, or federal or state agency to which they are admitted to practice or authorized to appear. VA also requires VSOs to recertify their representatives every 5 years. However, VA officials told us that they currently face a backlog in processing these annual certifications and therefore have not consistently monitored whether these re-certifications have occurred. For example, the official that oversees accreditation told us that in one instance, an attorney self-reported in a letter to VA that he was disbarred and that his accreditation should be cancelled. Since VA does not consistently monitor whether attorneys annually certify their standing with the bar, the agency would not have known that this individual was disbarred had he not voluntarily communicated this information. After our May 2013 exit briefing with VA, OGC informed us that they are developing plans to annually audit the certifications of good standing that attorneys and agents file. VA’s initial knowledge requirements for attorneys and agents are limited and do not ensure that they are knowledgeable about VA benefits. To become accredited, agents must pass an exam comprised of 25 multiple- choice and true-false questions. However, organizations that represent or help train agents told us the exam covers a wide array of subjects concerning veterans’ benefits law and procedure without deeply broaching any particular topic. Further, they said that the exam alone is not sufficient to determine whether agents have enough knowledge to represent veterans. For attorneys, VA presumes that any attorney in good standing with the bar is qualified and knowledgeable enough to assist veterans. As such, attorneys are not required to take an initial exam to demonstrate their knowledge of veterans’ benefits law. However, officials from two organizations that provide training for accreditation told us that membership with the bar does not guarantee that an individual is knowledgeable about VA benefits law. One attorney noted that it can take years to understand VA benefits issues and provide knowledgeable assistance in this area. In fact, representatives from one VSO told us that attorneys and agents often contact VSOs with questions about representing their claimants. In addition, VA’s initial and ongoing training requirements do not ensure accredited attorneys and agents are knowledgeable and VA does not consistently enforce existing requirements.