California Senate passes bill to protect veterans from claims fraud
July 08, 2025 | California State Assembly, House, Legislative, California
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The senator introduced Senate Bill 694, which aims to strengthen California's commitment to ensuring that veterans are not misled or taken advantage of when seeking benefits they have rightfully earned. He highlighted the troubling rise of unaccredited businesses that charge veterans exorbitant fees for assistance with their claims, often without the necessary training or authorization.
"Since 2006, we have seen the exploitation of a new industry," he stated, pointing out that these companies can charge fees up to five times the increase in a veteran's monthly benefits. For instance, a veteran approved for a 100% disability might receive around $3,800 monthly, yet some consultants demand fees as high as $19,000 for filing assistance. This practice not only burdens veterans financially but also undermines the integrity of the benefits system.
The senator underscored the need for stringent oversight, noting that federal law prohibits charging fees for initial claims preparation. Senate Bill 694 seeks to align state law with this federal prohibition, increasing penalties for unauthorized access to veterans' data and ensuring that only accredited individuals can assist with claims.
As he concluded, the senator reiterated his commitment to protecting veterans and their families, stating, "I do all this to protect them and to protect my brothers and sisters who served our great country." The bill, if passed, would mark a significant step toward ensuring that veterans receive the support they deserve without falling prey to unscrupulous practices. With an estimated $477 million charged to veterans by claims companies in 2023 alone, the urgency for reform is clear.
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