The California State Assembly has passed the Protecting Veterans from Predatory Practices Act (SB 694), a measure to protect veterans from predatory practices when applying for disability benefits they have earned through their service.

Assemblywoman Pilar Schiavo, Chair of the Assembly Committee on Military and Veterans Affairs and principal co-author of the bill with state Senator Bob Archuletta, celebrated the bill’s passage as a critical step forward in protecting California veterans from exploitation.

The Protecting Veterans from Predatory Practices Act strengthens state protections that align with federal law that prevents veterans from being charged exorbitant and illegal fees by unaccredited “claims consultants.” These companies, often referred to as “claims sharks,” have been known to charge disabled veterans as much as $22,000 for services that County Veterans Service Officers and accredited Veterans Service Organizations provide free of charge.

“Veterans deserve protection, not predatory contracts,” said Schiavo. “As the daughter of a disabled veteran and Chair of the Military and Veterans Affairs Committee, I am proud to co-author SB 694 to stop corporate predators that take millions each year out of the pockets of disabled veterans. This bill makes sure that the benefits our veterans earned through their service go directly to them and their families, not into the hands of profiteers. There is an existing accreditation process, but claim sharks choose not to go through it – they choose profit over people, charging disabled veterans thousands of dollars for services that federal law requires to be free.”

The Act builds on federal law enacted in 2006 to prohibit unaccredited individuals from charging veterans for filing initial disability claims. By updating California law to reflect those federal standards, the bill strengthens enforcement and ensures veterans are protected at the state level and empowers the Attorney General to step in to protect veterans when they for profit corporations break the law and prey on disabled veterans.

“California will not tolerate the exploitation of those who’ve worn the uniform in service of our nation. These bad actors have no VA training, face no oversight, and often charge illegal, excessive fees to veterans who are simply trying to access their earned benefits. We can no longer allow these companies to exploit the brave men and women who have given so much to protect our country,” said Archuleta. “The passage of SB 694 passage without a single “no” vote sends a strong message to California veterans: you protected us, now it is California’s turn to protect you.”

“Every year, we see veterans who lose thousands of dollars to unaccredited companies promising quick results. SB 694 puts an end to this exploitation and strengthens the protections veterans deserve,” said David West, President of the California Association of County Veterans Services Officers. “We are proud to stand with Assemblywoman Schiavo in fighting for those who served our nation.”

The measure now returns to the State Senate before heading to the Governor’s desk.