The Legislative Committee for the Alabama Department of Veterans Affairs has adopted a resolution to combat the exploitation of veterans by for-profit entities, known as ‘claim sharks.’ These entities charge high fees to assist veterans in claiming their benefits, often resulting in veterans forfeiting a percentage of their benefits in perpetuity. The resolution aims to prohibit the practice of charging veterans fees to claim their benefits and instructs ADVA board members to engage with state lawmakers on this issue.
Committee Vice Chair Scott Gedling described the resolution as a “grassroots effort to stop that predatory practice” and emphasized the importance of protecting veterans from exploitation. The resolution was adopted unanimously, with committee members sharing stories of veterans being taken advantage of in their communities.
While it is illegal for unaccredited entities to charge veterans fees for assistance with benefits filing under federal law, the enforcement of this law has been lacking. Efforts to reintroduce criminal penalties for this practice have been made in Congress, but have not succeeded. New Jersey has passed a law banning the practice, and other states are also working towards similar legislation.
Gedling highlighted the prevalence of veterans being exploited in Alabama and anticipated pushback from special interest groups if the proposed bill is carried by a state lawmaker. The ADVA has accredited service officers in 60 of Alabama’s 67 counties who assist veterans in claiming their benefits for free. The resolution aims to protect veterans from exploitation and ensure they receive the benefits they are entitled to.
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