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SB 693

Veteran Access, Liberty, Options for Recovery.

2025-2026 Session Introduced by Val Applewhite and 5 co-sponsors

The bill restricts non-attorney paid helpers from charging upfront or guaranteed fees for VA disability claims, requires clear written disclosures, and bans aggressive practices.

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Bill Summary · SB 693

SB 693 — "Veteran Access, Liberty, Options for Recovery." (North Carolina)

Status: Introduced Jan. 17, 2025; Judiciary Committee substitute adopted; enacted language scheduled to become effective Oct. 1, 2025. Primary sponsors: Senators Britt, Lee, and Craven.

Purpose / intent

The bill is intended to curb predatory or misleading commercial practices by non‑attorney providers who charge veterans (and their dependents/survivors) for help preparing, presenting, or prosecuting initial disability claims for veterans’ benefits. It regulates when and how compensation may be collected for veterans’ benefits work, requires written fee agreements and disclosures, and creates prohibitions aimed at protecting veterans from aggressive solicitation, improper access to personal accounts, conflicts of interest in medical exams, and misleading guarantees.

Key provisions

  • Adds a new statutory section (G.S. 143B‑1278) defining covered activity and terms:
    • “Compensation” = money, anything of value, or a financial benefit.
    • “Veterans’ benefits matter” = preparation, presentation, or prosecution of a claim for benefits administered by the U.S. Department of Veterans Affairs or the State Department of Military & Veterans Affairs.
  • Prohibitions (selected):
    • No person may receive compensation for preparing, presenting, prosecuting, advising, consulting, or assisting with an initial disability claim except as allowed under the statute.
    • No compensation for referrals to another paid provider.
    • No guarantees or advertisements promising specific outcomes (levels/amounts of benefits).
    • No aggressive or direct solicitation for veterans’ benefits work.
    • No access to an individual’s personal medical, financial, or government benefits login/credentials.
    • Prohibits using a medical professional for a secondary medical exam if that professional has an employment relationship with the paid preparer/advisor (conflict of interest).
  • Written agreement requirements (must be executed before services are rendered):
    • Signed by both parties and include payment terms.
    • Fees must be contingent on a successful outcome and shall not exceed five times the amount of the claimant’s one‑month increase in benefits.
    • No initial (up‑front) fee may be charged.
    • A clear written disclosure (specified language) must be provided at the outset, printed in at least 12‑point font, and also delivered orally; the claimant must acknowledge the oral disclosure and sign the written document. Providers must retain the disclosure while services are provided and for at least one year after termination.
  • Enforcement and penalty:
    • Violation is classified as an unfair trade practice under the North Carolina Unfair Trade Practices Act (G.S. 75‑1.1), exposing violators to remedies available under that statute.
  • Exclusion:
    • The statute does not apply to attorneys licensed to practice in North Carolina.

Who is affected

  • Primary beneficiaries: veterans, dependents, survivors, and other claimants—intended protection from harmful marketing and fee practices.
  • Regulated parties: non‑attorney paid preparers, commercial “claims consultants,” referral brokers, and any person or business seeking compensation for initial veterans’ disability claims in NC.
  • Attorneys are excluded from the restrictions in this section (licensed NC attorneys remain subject to other professional rules).

Potential impacts and notes

  • Consumer protection: establishes limits on contingency fees and requires clear disclosures to reduce exploitation of claimants unfamiliar with the VA process.
  • Market effect: likely to restrict some fee arrangements used by non‑attorney commercial actors and shift more initial assistance toward free or accredited services (e.g., state/local VSOs, accredited agents, or attorneys).
  • Enforcement: treats violations as unfair trade practices, enabling private suits and actions by the Attorney General under existing NC law.
  • Effective date: provisions apply beginning Oct. 1, 2025 (per bill language).

Compiled from official sources — confirm details with the bill’s official record.

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