What is a “Claim Shark”?

“Claim sharks” are unaccredited individuals or companies that charge veterans fees to help file VA disability claims. These entities are not accredited by the Department of Veterans Affairs (VA) and operate illegally under federal law. They often use high-pressure sales tactics, misleading marketing, and exploitative fee structures to take advantage of veterans seeking benefits they earned through service.

How They Operate

Claim sharks may:

• Promise to “guarantee” a favorable disability rating or faster VA decision.

• Charge thousands of dollars, often calculated as five or six times the veteran’s monthly benefit increase.

• Require access to personal VA login credentials.

• Use aggressive sales language and contracts that are difficult to cancel.

• Hide behind vague terms like “medical consulting” or “claims strategy.”

These companies cannot access VA computer systems (which houses the Veteran’s C-File), are not trained or monitored by the VA, and are not legally allowed to prepare or present disability claims. They are giving you claims advice based on solely what you’re able to provide to them. No C&P exams, no medical opinions, and none of your military personnel or medical records.

Why This Is Illegal

Under federal law:

• Only VA-accredited attorneys, claims agents, and Veterans Service Organization (VSO) representatives can assist with VA claims.

• No one is allowed to charge a veteran for help filing an initial claim for disability compensation.

• Accredited attorneys and agents can charge fees for appeals—but only after a decision has been issued. And that fee can never be based on future monthly compensation.

Despite these protections, claim sharks exploit regulatory gaps and operate without oversight. The VA has limited enforcement authority, and criminal penalties for unaccredited assistance were removed in 2006, creating a legal loophole that many companies abuse.

The Harm to Veterans

⚠️ Financial Exploitation - Veterans often pay $10,000–$20,000+ in fees for claims that would have been handled for free by a VSO or accredited representative.

⚠️ Misleading and Poor Advice - Untrained staff may submit poorly prepared claims or give bad advice, which can delay or even harm a veteran’s case.

⚠️ Lack of Recourse - These companies and individuals are completely unregulated. If a veteran is harmed or overcharged, there is often no governing body to appeal to.

How to Protect Yourself

• NEVER pay for help with an initial VA claim.

• ALWAYS verify accreditation by searching the VA Office of General Counsel database:
  https://www.va.gov/ogc/apps/accreditation/index.asp

• USE a VSO such as the VFW, DAV, American Legion, or a VA-accredited attorney or claims agent.

• REPORT scams to:

  • VA Office of Inspector General

  • Federal Trade Commission

  • VSAFE.gov

Federal & State Responses

• GUARD VA Benefits Act: Proposed federal legislation would restore penalties for unaccredited entities charging for VA claims assistance.

• State Laws: New York, New Jersey, and Maine have passed laws prohibiting claim shark contracts. Other states are considering similar measures.

Final Word

Don’t let predators profit from your service. There is never a reason to pay thousands of dollars for VA disability claims help. Free, ethical, and accredited assistance is available.

If you're unsure, ask questions, verify credentials, and know your rights.

What is NOT a “claim shark”?

• VSOs, Accredited Claims Agents, Accredited Attorneys

• Companies or individuals that provide nexus letters, DBQs, or other medical information

  • However, claims advice cannot be provided, so if they’re explaining to you what they think your legal strategy should be, that’s a red flag.

Contact us to schedule a consultation to see if we can assist with your case.