05/05/2026
Veterans of Foreign Wars (VFW), Dept of North Carolina's message sent today to the NC General Assembly.
Dear Members of the North Carolina General Assembly,
The Veterans of Foreign Wars (VFW), Department of North Carolina is writing to you today on behalf of our over 22,000 members & auxiliary concerned constituents. We formally urge the General Assembly to oppose Senate Bill 693 and to work toward the immediate removal of Senate Bill 118, Section 4 (§ 143B-1278) from North Carolina law.
While we recognize the General Assembly’s intent to curb "claim sharks" and predatory actors, the current language in these bills creates a direct conflict with federal law, specifically 38 U.S.C. § 5901, and inadvertently "green-lights" illegal activity.
The Conflict with Federal Law: Under 38 U.S.C. § 5901, federal law is explicit: no individual may act as an agent or attorney in the preparation, presentation, or prosecution of a veterans' claim unless they are specifically recognized and accredited by the Secretary of Veterans Affairs. Furthermore, 38 U.S.C. § 5904 prohibits even accredited agents from charging fees for assistance with initial claims.
Why SB 118 and SB 693 are Problematic:
- Conflict Preemption: By establishing a state-level "permission" structure for compensation, N.C.G.S. § 143B-1278 implies that unaccredited consultants can operate legally as long as they follow state disclosures. This creates a state-sanctioned pathway for conduct that federal law deems illegal.
- Field Preemption: The federal government has fully occupied the regulatory field regarding veterans' benefits. A parallel state-level regulatory scheme interferes with the VA's sole authority to accredit representatives.
- The "Initial Claim" Fee Gap: These state provisions could be interpreted to allow fees for "consulting" on initial claims, which is a direct violation of the federal ban on such fees.
Our Request: The current path of SB 693 and the existing language in SB 118 risk the financial security of North Carolina’s heroes by legitimizing unaccredited actors. We respectfully request:
- The rejection of SB 693, currently in the House Committee on Rules, Calendar, and Operations.
- The repeal of SB 118, Section 4 (§ 143B-1278).
- The introduction of a "Clean Veteran Protection Act" that reinforces the federal accreditation standard and protects veterans from financial exploitation without violating federal statutes.
North Carolina must lead the way in protecting its veterans by adhering to the standards set by the Department of Veterans Affairs. We look forward to working with you to ensure our laws truly serve those who have served us.
Respectfully,
Veterans of Foreign Wars (VFW)
Department of North Carolina
