06/08/2026
TODAY the VFW Dept of N. Carolina sent the following message to our Representatives in Raleigh.
VFW Legislative Request: Repeal S.L. 2025-72
Dear NC Representatives,
On behalf of the Veterans of Foreign Wars (VFW), Department of North Carolina, and the thousands of combat veterans and families we represent across this state, we are writing to formally request that the General Assembly introduce legislation to repeal Part IV (Section 4) of Session Law 2025-72 (Senate Bill 118), titled Regulate Compensation For Services Related to Veterans’ Benefits Matters.
While the VFW deeply appreciates the General Assembly’s continued commitment to supporting North Carolina’s military personnel, Section 4 creates a state-level mechanism that codifies, permits, and structures fee-charging arrangements for unaccredited, for-profit entities assisting with VA disability claims. This provision directly undermines the VA-accredited service officer network and stands in flagrant violation of both federal statutory frameworks and explicit federal judicial rulings.
The VFW Department of North Carolina opposes Section 4 based on the following critical legal conflicts:
- Violation of Federal Supremacy (38 U.S.C. Chapter 59): Congress has established a strict, comprehensive framework governing who may prepare, present, and prosecute claims before the Department of Veterans Affairs. Under 38 U.S.C. § 5901, no individual may assist veterans with claims unless they are formally accredited by the Secretary of Veterans Affairs. Furthermore, federal law strictly prohibits anyone—accredited or unaccredited—from charging veterans fees for assistance with initial applications for VA benefits. By attempting to regulate and legitimize these illicit fees at the state level, Section 4 creates an unconstitutional conflict with federal consumer protection laws.
- Defiance of Federal Court Ruling (Ford v. Veterans Guardian, Case 1:23-cv-00756-CCE-LPA): On May 20, 2026, Chief District Judge Catherine C. Eagles of the U.S. District Court for the Middle District of North Carolina issued a definitive ruling affirming that unaccredited "claims consulting" companies charging contingent fees on initial claims violate Title 38 U.S. Code Chapter 59. The federal court clearly established that companies cannot bypass federal accreditation laws simply by labeling their services as "consulting." Section 4 attempts to carve out a state-level safe harbor for practices that a federal court in our own state has just ruled unlawful. Read the full federal court decision here -https://www.govinfo.gov/content/pkg/USCOURTS-ncmd-1_23-cv-00756/pdf/USCOURTS-ncmd-1_23-cv-00756-3.pdf
For decades, VFW Accredited Service Officers have provided professional, expert, and entirely free benefits representation to North Carolina’s veterans. Allowing Section 4 to remain on the books actively harms our state's disabled veterans by validating predatory, unaccredited entities that strip away a veteran's hard-earned compensation through unlawful fee structures.
As a leading voice for North Carolina's veteran community, the VFW urges you to protect our state's heroes and uphold the federal rule of law by championing a repeal of Part IV of SB 118 in the upcoming legislative session.
We thank you for your time, leadership, and steadfast support of our veterans. We look forward to working with you to resolve this critical issue.
Respectfully yours,
Veterans of Foreign Wars (VFW)
Department of North Carolina
