A few years ago, I heard a story about a veteran I knew from church who received a consultation call and signed a contract. The company claimed they would increase his disability rating, but he was silent for a long time after seeing the bill he received.

At that time, I thought it was just an expensive service. However, it turned out that this issue led to a change in the law in California.

On February 10 of this year, Governor Newsom signed SB 694. This bill, introduced by State Senator Bob Archuleta, targets unqualified agents commonly referred to as claim sharks.

The key point is simple. Individuals who are not federally accredited by the VA cannot prepare or assist in filing claims for veterans' benefits while receiving payment.

Fees cannot exceed the limits set by federal law. It is also prohibited to request veterans' VA account login information under the guise of helping with claims.

The California Consumer Legal Remedies Act (CLRA) has also been expanded to include veterans' benefits claims. This means that those who have been harmed now have a legal avenue to pursue.

The reason 2027 is mentioned in the title is that civil penalties for unqualified agents will take effect on January 1, 2027.

I couldn't find the exact amount of the fines in the reports and county documents I reviewed. For those curious, it's best to check the original text of SB 694 on the state legislature's bill website.

In fact, this has been illegal under federal law all along. However, LAist reports that the removal of criminal penalties by Congress about 20 years ago led to a proliferation of such companies.

According to federal regulations, only VA-accredited attorneys or claims agents can receive fees. Typically, they can only be paid after the initial claim decision is made.

So how much did these companies charge? According to LAist, a Vietnam War veteran received $1,100 in monthly benefits but was billed $5,500.

Critics say that the fees are usually five times the increased monthly benefits. Depending on the disability rating, it can exceed $10,000.

Honestly, I was a bit angry when I saw those numbers. It's a structure that takes away from those who have sacrificed for their country.

The industry pushback has also been significant. Nevada's Veterans Benefit Guide reportedly spent $371,821 lobbying against this bill and a similar one in 2024.

North Carolina's Veterans Guardian also spent $150,000 on lobbying in California over two years. The industry argues that this law takes away veterans' choices.

That argument is worth considering. It's true that some individuals sought private companies because they felt government offices were slow and unhelpful.

There are still sparks of legal disputes. The same company has filed a lawsuit to block a similar law in New Jersey, and in 2025, a federal appeals court sided with the company.

Perhaps that's why Matt Knox, the director of the San Bernardino County Veterans Affairs, urged that vigilance is necessary to enforce this law.

Still, I believe this is a matter of principle. The desperation of those in need should not become someone else's business model.

So where should our local veterans' families go? The answer is closer than you might think.

The County Veterans Service Office (CVSO) has certified staff who provide free assistance with disability compensation or pension claims. This service is available not only to veterans but also to their families.

In San Bernardino County, you can contact them at va.sbcounty.gov or 1-866-472-8387. This law does not affect these free services.

Nonprofit organizations like the American Legion also have certified service officers who assist with claims for free. If you prefer Korean, be sure to ask in advance if they can provide interpretation.

If someone offers to help for a fee, first check the VA accreditation lookup site (va.gov/ogc/apps/accreditation) to search for their name.

You can find attorneys, claims agents, and representatives from organizations. Since accreditation status can change, it's a good idea to verify again just before signing a contract.

If there's a clause in the contract requiring you to pay multiple times the future benefits, do not sign immediately. Requests for login information are now a clear warning sign.

If you feel that the fees you've already paid are excessive, you can request a fee review from the VA Office of General Counsel (OGC). Since individual circumstances vary, it's advisable to consult with the county office first.

Personally, I would definitely go to the county office first. Even if it takes a little longer, it's free, and most importantly, I can fully protect my benefits.

If you know any veterans, please share this article with them. I believe that they deserve to receive their rightful benefits without being shortchanged.