We're Going to Need a Bigger Boat: Attorney General Bonta Continues Championing Legislation to Protect California Veterans Against Claim Sharks, Financial Exploitation

California veterans who need help with filing an initial claim for benefits can receive assistance at no charge

SACRAMENTO - In anticipation of an upcoming vote, California Attorney General Rob Bonta, a co-sponsor of Senate Bill 694 (SB 694), reiterates the need for critical legislation seeking to protect veterans from claim sharks. Claims sharks are individuals and organizations that are not accredited by the U.S. Department of Veterans Affairs (VA) and charge veterans for representation or other services in connection with their benefits claims, often promising a faster claims process or guaranteed benefit increases. While some unaccredited individuals and organizations are well-intentioned, many are predatory and charge exorbitant fees for subpar or worthless services and operate outside of the VA accreditation system and the oversight, fee caps, and other consumer protections that it provides to veterans. SB 694, authored by Senator Bob Archuleta (D-Pico Rivera) and Assemblywoman Pilar Schiavo (D-Santa Clarita), would underscore that it is unlawful for claim sharks to obtain unauthorized access to the VA claims system using a veterans' login information, and prohibit the charging of fees that exceed what a VA-accredited attorney or claims agent can legally charge to represent a veteran with a benefits claim. California and its counties have led the way in ensuring that California veterans and their families have access to multiple options for free assistance with initial benefits claims.

"Claim sharks pose a financial risk to veterans who need help with their benefits claims," said Attorney General Rob Bonta. "SB 694 halts predatory individuals or companies that exploit veterans seeking help accessing their benefits. This legislation makes it crystal clear: If you want to charge veterans for help with their benefits claims, you must be accredited by the VA. California will vigorously protect those who have sacrificed so much to protect us."

"Senate Bill 694 strengthens California's commitment to protecting veterans from exploitation. More importantly, it reaffirms our responsibility to ensure that veterans are not misled, manipulated, or taken advantage of when seeking the benefits they have earned through military service," said Senator Bob Archuleta. "For too long predators have provided illegal services and coerced veterans to agree to exorbitant fee agreements, sometimes including contingent fees that would be illegal if charged by an accredited attorney or agent. Federal law requiring accreditation is the underpinning of this bill. It is the key principle that many military and veteran groups supporting this bill seek to uphold in California law. I thank the Attorney General for his commitment in upholding the law but most importantly for his commitment to protecting veterans who've given so much for their country."

"For years, claims predators have been receiving cease and desist letters from the VA because they are taking tens of thousands of dollars from disabled veterans despite it being illegal under federal law. And these businesses are using millions of dollars that should have gone to disabled veterans to fight SB 694, a bill that merely aligns California law with federal law," said Assemblywoman Pilar Schiavo. "The Attorney General is ready to protect veterans from illegal and unscrupulous businesses, and I thank him for his dedication to protecting those who have served and sacrificed just like my dad, and for making sure they are not charged for services federal laws require to be free."

California veterans who need assistance with filing an initial claim for benefits can receive assistance at no charge from their county veteran service office, working in partnership with the California Department of Veterans Affairs, an accredited veteran's organization, or from another U.S. VA accredited representative. Attorneys and claims agents with current VA accreditation can also represent veterans before the VA and assist with benefit claims. VA-accredited agents must pass a certification exam that tests their knowledge, have to pass a background check, and complete ongoing training. The fees that VA-accredited attorneys and agents can charge are capped by law, and they are subject to discipline - including revocation of their accreditation - if they don't represent their clients competently and in accordance with the law.

Specifically, SB 694 would:

• Prohibit any person from being paid for work related to the preparation, presentation, or prosecution of any claim for federal veterans benefits unless they are accredited by the VA as an attorney or claims agent.
• Make it a crime for claim sharks to access VA computer systems using a veteran's login information.
• Make it illegal for any person to charge a fee for assistance with a veteran's benefits claim that exceeds the fee that could be lawfully charged by a VA-accredited attorney or claims agent for those services.