Lawsuit says new law designed to protect veterans from claim sharks is unconstitutional [Video]

A group of veterans and a benefits consulting firm are suing Maine Attorney General Aaron M. Frey over claims that a new law designed to shield the state’s veterans from predatory practices is unconstitutional, according to documents filed in the U.S. District Court for Maine on Friday.

The new law, which took effect Friday, prohibits anyone from receiving compensation for preparing, advising or assisting a veteran with a benefits matter. Supporters contend it will prevent veterans from being taken advantage of by so-called “claim sharks” – individuals and companies that charge exorbitant fees to assist in filing for benefits with the U.S. Department of Veterans Affairs and are not accredited.

Such companies may promise increased payouts, expedited claims decisions or heightened disability ratings, according to the Veterans of Foreign Wars. But veterans who use their services may end up being charged hidden fees or have trouble breaking contracts with the agencies.

Under the new law, signed …