HB1423
To Prohibit A Person From Receiving Compensation For The Preparation, Presentation, Or Prosecution Of A Claim With Regard To A Veterans' Benefits Matter Except As Authorized By Federal Law.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
House Bill 1423, titled the 'Governing Unaccredited Representatives Defrauding (GUARD) VA Benefits Act,' seeks to prohibit individuals and entities from charging fees for assisting veterans with VA benefit claims unless such compensation is authorized by federal law. The bill creates a state-level cause of action to prevent the improper collection of fees and unethical conduct by unaccredited representatives. It mandates that any person assisting with veterans' benefits matters must adhere to the same ethical standards regarding advertising, solicitation, and confidentiality as those required by the Arkansas Rules of Professional Conduct for attorneys. Furthermore, the legislation categorizes violations of these provisions as deceptive and unfair trade practices under the state's Deceptive Trade Practices Act. Violations are punishable as a Class A misdemeanor. The act specifically restricts compensation for the preparation, presentation, or prosecution of claims, as well as the referral of individuals for these purposes, ensuring alignment with federal regulations.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are military veterans and their dependents or survivors, who would be better protected from predatory practices, fraud, and excessive fees when seeking assistance with VA disability and benefit claims. By requiring those who charge fees for such services to be accredited and held to professional ethical standards, the bill aims to safeguard veterans' financial interests and ensure they receive proper representation.
Who Might Suffer?
The primary groups negatively impacted are unaccredited consultants, 'claims coaches,' and for-profit entities that currently charge veterans fees for advising on VA claims outside of federal accreditation requirements. These individuals and businesses would be prohibited from collecting compensation for their services, effectively disrupting their business models. Additionally, individuals or firms found in violation of these new standards face potential criminal liability as a Class A misdemeanor and civil penalties under the state's Deceptive Trade Practices Act.
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