Introducing the Predatory Claims Act

Post Published By Toby Heaney

This bill, introduced in the West Virginia Senate, targets protecting veterans seeking assistance with their benefits. It aims to prevent individuals or organizations from charging veterans for help unless permitted by federal law.

Need for the Bill:

  • Potential for Misleading Practices: Veterans navigating the complexities of benefit claims might be vulnerable to misleading services.
  • Free Resources Available: Government agencies like the Department of Veterans Affairs and local service organizations often provide free assistance with veterans’ benefits.
  • Unreasonable Fees and False Promises: Some individuals or organizations might charge excessive fees or make false guarantees about securing specific benefits.

This bill aims to address these concerns by:

  • Ensuring Transparency: It mandates clear disclosures from those offering paid services, informing veterans about free alternatives.
  • Curbing Unfair Practices: It prohibits charging for services before a certain stage in the claim process and prevents guarantees of specific benefit outcomes.
  • Protecting from Excessive Fees: The bill aims to stop unreasonable charges by referencing established guidelines for fees in veteran benefit claims.

In essence, the bill seeks to create a safer environment for veterans seeking help with their benefits by promoting transparency, preventing misleading practices, and ensuring veterans are aware of free resources available to them.

Here’s a simplified breakdown:

  • Generally prohibits charging veterans for help with benefits: People cannot get paid to assist veterans with their claims unless federal law allows it.
  • Requires clear disclosures: Those offering paid help must clearly state they are not affiliated with the government and inform veterans about free resources available.
  • Protects veterans from unreasonable fees and false promises: It prevents people from charging excessive amounts or guaranteeing specific benefits.

Overall, the bill aims to ensure veterans get accurate help with their claims and are not misled or taken advantage of.

Lawyers would likely still be able to provide help to veterans under this bill with some restrictions:

  • Lawyers are exempt from the general ban: The law specifies “except as permitted under federal law” and lawyers offering legal services fall under that category.
  • Disclosures and fee regulations apply: Lawyers would need to adhere to the disclosure requirements mandated by the bill. This means clearly informing veterans that they are not affiliated with the government and highlighting the availability of free resources.
  • Unreasonable fees and false promises are prohibited: Lawyers cannot charge excessive fees or guarantee specific benefits. They must abide by existing ethical guidelines and fee regulations.

Therefore, veterans can still seek legal help for their claims. However, this bill aims to ensure transparency and prevent misleading practices by requiring disclosures and prohibiting unreasonable fees and false promises.

Download the bill

Post Publish Date: December 1, 2023

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