Veterans face risks with for-profit VA disability claims consultants
A growing number of private firms now offer paid help to veterans filing VA disability claims. These companies, often called 'claims sharks,' have faced criticism for high fees and misleading practices. Their rise follows a 2006 law change that removed criminal penalties for charging veterans for claims assistance.
One veteran, Adam, turned to such a firm after struggling with the VA process. Despite paying thousands, he received no benefits and was left with more debt.
Adam, an Army combat veteran, suffered a traumatic brain injury in Afghanistan when his vehicle hit an IED in the late 2000s. Years later, he sought disability compensation through the VA. The process took four months before his claim was denied.
Frustrated by the complexity, Adam hired a private company to assist with his appeal. The firm charged him thousands but failed to secure any benefits. His experience reflects a wider issue: many veterans, disillusioned with the VA or veterans service organisations (VSOs), turn to for-profit consultants for help.
Since 2006, when Congress lifted restrictions on charging fees for claims assistance, the number of these consultants has surged. Critics accuse some of using dishonest tactics, such as overcharging veterans or misrepresenting cases to the VA. The VA has sent cease-and-desist letters to certain firms, but enforcement remains limited.
States have taken action to curb these practices. By early 2026, 12 states—including California, Florida, New York, Texas, and Virginia—have passed laws regulating or banning unaccredited consultants. Measures include banning advance fees, requiring registration, and imposing fines of up to $10,000 per violation. California's law even allows the state attorney general to prosecute firms charging excessive fees. However, Louisiana's similar legislation was recently struck down in court, highlighting legal challenges in regulating the industry.
Veterans' experiences with these companies vary. Some report improved benefits, while others, like Adam, end up worse off—facing denied claims and mounting bills.
The debate over claims consultants continues as more states introduce regulations. Veterans seeking help must now navigate a mix of state laws and VA warnings. For many, the risk of high fees and unfulfilled promises remains a major concern.
