(Photo: Kampus Productions)

California lawmakers are advancing Senate Bill 694, authored by Sen. Bob Archuleta (D-30th District), to stop predatory “claim sharks” that charge Veterans illegal or excessive fees for help with their VA benefits claims.

Under federal law, only accredited representatives such as County Veteran Service Officers, CVSOs, or nationally chartered Veterans Service Organizations like The American Legion, Disabled American Veterans, and Veterans of Foreign Wars are authorized to help Veterans file claims at no cost. Claim sharks exploit loopholes by charging thousands of dollars for services that are already available for free. SB 694 closes those loopholes and restores accountability at the state level.

On August 29, SB 694 moved out of the Assembly Appropriations Committee and now enters the final stage of the legislative process. Lawmakers must pass it by September 12 for it to reach the governor’s desk, where a signature decision will be made by October 12.

Veteran advocates strongly support the bill, warning that without action, predatory companies will continue to take advantage of those who served. Advocates say the legislation is needed because federal enforcement has been weak, leaving many Veterans vulnerable to exploitation. They are calling on California Veterans to make their voices heard before the September 12 deadline.

Seth Reeb of Reeb Government Relations, LLC, says this is the moment to speak up.

“The opposition’s model profits from Veterans’ benefits. We need a coordinated push from every organization. Please line up members to make calls, visit district offices, and submit letters,” Reeb stated. “Let’s send a clear message: California will not tolerate the exploitation of those who’ve worn the uniform.”

If passed, SB 694 would make it a misdemeanor for anyone who is not accredited by the VA to prepare or file compensation claims. It also prohibits unaccredited individuals from demanding Veterans’ login information to federal systems and allows the California Attorney General to prosecute violators.

“Unfortunately, some veterans are misled by false promises of faster processing or increased lump-sum payments from unaccredited agents, often referred to as claim sharks,” Archuleta said. “These bad actors have no VA training, face no oversight, and often charge illegal, excessive fees. That is why I introduced Senate Bill 694, to stop these predators from targeting our veterans.”

Opponents, however, argue the proposal could unfairly restrict access to trusted consultants, some of whom are Veterans themselves with years of experience helping others. They say the bill will paint all non-accredited advisers as con artists, despite many being respected within their communities.

Advocacy groups warn that claim shark lobbyists are working hard against the bill and that grassroots pressure will be key to securing passage. They are asking supporters to call their state Assembly members, visit district offices, submit letters before the floor, and use Voter Voice. Proponents believe that public involvement will determine the outcome. They argue that SB 694 represents a clear choice between protecting Veterans and allowing predatory businesses to continue profiting off those who served.

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.