STATES MOVE TO SHUT DOWN ‘CLAIM SHARKS’ TARGETING VETERANS’ DISABILITY BENEFITS
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More states are enacting laws to prevent unaccredited companies from charging Veterans excessive fees for assistance with VA disability claims. For many Veterans, the most urgent threat in the VA disability system isn’t from the amount of paperwork or the complexities it requires but from people preying on those seeking help. The threat of danger grows in this ecosystem every day.
The disability process is a long-storied evolution that is often riddled with delays, denials, confusion, and overwhelming information that isn’t easy for any Veteran, or anyone, to understand. The perception of difficulty, challenges, and rejection alone is enough to make anyone feel inept at successfully completing the process on their own. For some Veterans, that’s enough to compel them to seek out third-party help.
In recent years, a rapidly growing group of unaccredited consultants has seemingly appeared everywhere, popping up left and right – offering to help Veterans get disability benefits faster, with higher ratings, and for fees that can reach thousands of dollars. Congressional testimony and state reports show that gaps in enforcement are the loopholes that allow these businesses to operate with little regulation or oversight. Now confronted by these urgent issues, lawmakers nationwide are stepping in.
As a result, more states are passing laws that allow local authorities to enforce federal accreditation rules and go after companies that charge Veterans for claims help without the authorization of being an accredited agent or business.
Federal Accreditation Rules Left Enforcement Gaps
Federal law says only representatives accredited by the Department of Veterans Affairs can charge fees for claims help, usually only after the first claim decision.
Congressional records show that changes to federal enforcement in the mid-2000s lowered criminal penalties, making it harder to prosecute violations and leading states to create their own enforcement rules.
States Leading the Crackdown With Direct Fee Prohibitions
With these new tools, several states now immediately ban agents from charging a fee for helping with Veterans’ benefits unless allowed by federal law. The only way to be permitted by federal law to assist and submit a disability claim on behalf of a Veteran is to be an accredited claims representative who is accredited by the Department of Veterans Affairs.
This critical step equips state attorneys general with the authority to enforce federal accreditation rules now.
States leading the way:
Consumer-Fraud Laws Expanding Protections in Other States
In addition to direct bans, some states are urgently turning to broader consumer protection laws that target deceptive or unfair business practices when addressing claims consulting.
California’s New Law Signals Accelerating National Momentum
In February 2026, California passed a law that stops unaccredited companies from charging Veterans for help with VA disability claims. Governor Gavin Newsom signed off on this law as part of long-term consumer protection efforts.
Officials are raising alarms: with every day, more Veterans lose thousands to illegal fees for services they should receive for free from accredited representatives.
The urgency to stop these scams is mounting fast, with concerns underscoring the urgency of the latest legislative changes.
Federal Court Rulings Emphasize Continuing Legal Conflicts
Legal conflicts are ongoing over how states expand regulatory limits. A recent federal court decision blocked Louisiana’s “PLUS Act” after finding that it conflicted with existing federal rules on who can be paid for representing Veterans in benefits claims, highlighting legal uncertainty between state and federal authority.
Proposed legislation shows the policy landscape is still evolving. At the same time, some states are still debating how far protections should go. For example, Connecticut lawmakers considered a bill targeting claims consulting, but it was not passed.
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A Nationwide Shift Toward Stronger Enforcement
These developments show a clear national trend that states are increasingly taking action to enforce federal accreditation standards and to protect Veterans from unregulated claims assistance services. Policy experts warn that more legislation is on the way as oversight efforts and probes accelerate across the country.
As states tighten protections and enforcement expands, the message is becoming unmistakable: the waters around Veterans’ disability claims are no longer unguarded. For companies that built business models on confusion, desperation, or inflated promises, the tide is turning, and fast. In an arena meant to serve those who served, policymakers are making clear that predators have no place circling the very people the system was designed to protect.
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BY NATALIE OLIVERIO
Veteran & Senior Contributor, Military News at VeteranLife
Navy Veteran
Natalie Oliverio is a Navy Veteran, journalist, and entrepreneur whose reporting brings clarity, compassion, and credibility to stories that matter most to military families. With more than 100 published articles, she has become a trusted voice on defense policy, family life, and issues shaping the...
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Natalie Oliverio is a Navy Veteran, journalist, and entrepreneur whose reporting brings clarity, compassion, and credibility to stories that matter most to military families. With more than 100 published articles, she has become a trusted voice on defense policy, family life, and issues shaping the...
