California Just Cracked Down on VA Claim Sharks. Here’s What Every Veteran Needs to Know.

On February 10, 2026, Governor Gavin Newsom signed a law making California the latest state to ban unaccredited private companies from charging veterans for help with their VA disability claims. The law takes direct aim at a fast-growing industry of so-called “claims consultants” – companies that can charge $10,000 or more for assistance that accredited representatives are often required to provide for free or at a fraction of the cost. CalMatters, which covered the signing, reported on a Vietnam-era veteran who received a monthly benefit increase of $1,100 and was then billed $5,500 by the company that helped him, five times what his benefits went up in a single month.

That kind of outcome is exactly what this law was designed to stop. And while California’s action is significant, it matters for veterans everywhere because it reflects a national debate that is far from settled.

What “Accredited” Actually Means

VA accreditation is the federal gatekeeper for anyone who prepares, presents, or formally assists with a VA disability claim. Accredited representatives – Veterans Service Officers (VSOs), accredited claims agents, and accredited attorneys – must meet VA requirements and operate under VA rules and discipline. That oversight exists for a reason: when someone is helping you fight for benefits that affect your monthly income and your family’s financial security, accountability matters.

Accreditation also governs fees. Under federal law and VA regulations, fees for claims representation are tightly constrained. In practice, accredited VSOs typically provide help at no cost, and when paid representation is appropriate, the fee structure is governed by a compliance framework designed to protect veterans, not exploit them.

Non-accredited companies have operated in a gray zone for years, arguing they provide “coaching” or “education” rather than formal representation, which they claim exempts them from VA fee rules. Critics call these operators “claim sharks” because their contingency-style fees, sometimes charged as a percentage of a veteran’s total lifetime award, can run into thousands of dollars regardless of how long the process took or how much work was actually done. Supporters of the industry counter that the VA system is confusing and slow, and that veterans deserve more options. That tension is exactly what’s driving legislation across the country.

A Patchwork of Protections Depending on Where You Live

California isn’t alone in acting, but the national landscape is fragmented in ways that directly affect veterans. Eleven states have moved to ban or severely restrict unaccredited claims consulting, according to reporting by The War Horse. Another group of mostly Republican-led states has taken the opposite approach, legalizing the industry under state-specific rules like fee caps or disclosure requirements. The result is predictable: the protections a veteran has depend heavily on where they live, and companies can simply shift operations to more permissive states.

At the federal level, Congress has been at a stalemate for years, unable to agree on whether to ban the industry outright, regulate it more tightly, or leave it alone.  Until there’s a national standard, veterans will continue to face very different rules depending on where they live, and companies can simply shift operations to more permissive states.

What to Do If You’re Navigating a VA Claim Right Now

If you’ve been approached by a company offering to help boost your VA disability rating, this is a good moment to stop and verify. Before agreeing to anything, confirm whether the person or company is VA-accredited. The VA’s Office of General Counsel maintains a searchable database of accredited representatives. If someone isn’t in it, they are not authorized to formally represent you before the VA.

Ask what exactly they will do on your behalf, what they will charge, and when payment is due. If the fee is calculated as a percentage of your lifetime benefits, work out what that number actually adds up to over months and years. And ask whether free help is available through your county’s VSO or a national veterans service organization. In most cases, it is.

Practical Checklist: How to Vet Anyone Offering Help With VA Disability Claims

Whether you’re working with an accredited representative or someone calling themselves a “consultant,” use this checklist before you sign anything or pay any money.

1. Are They VA-Accredited?

☐ Ask directly: “Are you accredited by the U.S. Department of Veterans Affairs?”

☐ Request their full name and accreditation number.

☐ Verify them in VA’s accreditation database (searchable on VA’s Office of General Counsel website).

☐ Confirm whether they are a Veterans Service Officer (VSO), Accredited Claims Agent, or Accredited Attorney.

If they say they are “educators,” “coaches,” or “consultants” but not accredited, understand that they are not authorized to represent you before the VA.

2. How and When Do They Charge Fees?

☐ Do they charge upfront?

☐ Do they charge a percentage of your benefits?

☐ Do they charge based on your total lifetime award?

☐ Is the fee clearly written in a contract?

Red flags: large upfront fees before any VA decision, a percentage taken from future monthly benefits, pressure to sign immediately, or vague “consulting” language that avoids saying “representation.” Under federal law, accredited representatives may only charge fees after certain stages of the claims process and must follow VA fee rules.

3. What Exactly Will They Do?

☐ Will they prepare and submit forms?

☐ Will they review your medical evidence?

☐ Will they attend hearings?

☐ Will they communicate directly with the VA on your behalf?

If they say, “You submit everything yourself; we just advise,” clarify what you are paying for.

4. Do They Explain Risks and Alternatives?

☐ Do they inform you that many VSOs provide free assistance?

☐ Do they explain your appeal rights?

☐ Do they discuss timelines honestly, without guarantees?

☐ Do they avoid promising a specific rating percentage?

Anyone who guarantees a 70%, 100%, or “permanent and total” rating should be treated with caution.

5. Is There Transparency in the Contract?

☐ Read the entire agreement before signing.

☐ Confirm cancellation rights.

☐ Check whether disputes must go to arbitration.

☐ Confirm whether they can access your VA file.

If the agreement is confusing or feels rushed, pause.

6. What Is Their Reputation?

☐ Search the company name online.

☐ Check Better Business Bureau complaints.

☐ Look for state attorney general warnings.

☐ Ask for references.

7. Understand Your State’s Law

States vary significantly.

●  Some restrict or ban unaccredited paid assistance.

●  Others allow it with specific disclosures.

●  Some are actively debating new legislation.

If you live in a state that restricts non-accredited agents — such as California — charging for claims help without accreditation may be illegal.

8. Protect Your Personal Information

☐ Never share your VA login credentials.

☐ Be cautious about granting broad power of attorney.

☐ Confirm how your medical records are stored and protected.

The Bottom Line: If someone pushes urgency, avoids the word “accredited,” promises guaranteed results, or charges thousands upfront, slow down. The VA claims process can be complex, but veterans should never feel pressured or exploited while seeking benefits they’ve earned.

The VA claims process is complicated, and wanting experienced help is completely reasonable. That’s why The Rep for Vets works as VA-accredited claims agents serving veterans nationwide, with fees drawn only from past-due benefits recovered on your behalf, never from upfront, interim or other payments on from your ongoing monthly payments. For a free evaluation of your claim or appeal, call (888) 573-7838.

You’ve already earned these benefits. Make sure the help you get doesn’t cost you more than it’s worth.