Advocates are warning Nevada’s more than 220,000 veterans to avoid commercial consulting firms that charge thousands of dollars for services that are legally available for free.
These companies, often described as “claim sharks,” have faced mounting scrutiny as the biggest one recently filed for bankruptcy and another is based in Las Vegas, KSNV reported.
“A claim shark, Hoffmann said, is a commercial consulting firm that charges veterans for help filing U.S. Department of Veterans Affairs disability claims — a practice that runs into federal restrictions on who can represent veterans before the VA,” KSNV reported.
Matt Hoffmann, an attorney at Battle Born Injury Lawyers, is encouraging veterans and their relatives to familiarize themselves with the operations of these businesses and the relevant legal parameters.
According to 38 U.S.C. section 5901, the only individuals permitted by law to provide representation for veterans in VA matters are accredited Veterans Service Officers, accredited attorneys, and accredited claims agents.
VSOs include organizations such as the VFW, Disabled American Veterans and the American Legion.
They represent veterans for free and are legally prohibited from charging a fee. While accredited attorneys and accredited claims agents are permitted to collect fees, they may only do so once the VA has provided an initial decision regarding a claim. Their fees are capped at 20% of back pay under federal regulation.
The rise of these commercial firms has prompted increased attention from Congress and state attorneys general. Hoffmann noted that the regulatory constraints regarding representation and compensation are a primary factor behind the growing scrutiny of the claim shark industry by Congress and state attorneys general. The legal framework surrounding VA claims is designed to protect veterans from predatory billing.
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