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Newsom Signs California Ban on Fee-Based VA Claims Consultants

Supporters say the ban protects veterans from predatory fees.

Overview

  • The law, SB 694, bars unaccredited firms from charging for VA disability claim assistance in California and requires them to cease or overhaul operations by the end of the year.
  • Backers including Sen. Bob Archuleta and major veterans service organizations describe the targeted companies as “claim sharks” that impose steep charges on vulnerable claimants.
  • Opponents such as Sen. Tom Umberg and some veterans argue the measure removes options for navigating a slow and complex VA process.
  • Lobbying disclosures show Veterans Guardian spent $150,000 and Veterans Benefit Guide $371,821 in California opposing the bill.
  • California joins a patchwork of state approaches, with about 11 enacting similar bans and a recent federal appeals court siding with Veterans Benefit Guide in a challenge to New Jersey’s prohibition.