Kentucky would limit fees charged for veterans' benefits claims help

People and businesses would face limits on charging for claims help and receiving payment for referrals. The rules cover federal and Kentucky veterans' benefits claims by veterans, dependents, survivors, and other eligible people. Fees could not exceed five times the monthly benefit increase or $12,500, whichever is lower, and could not include initial charges, nonrefundable charges, or interest. For claims filed within the one-year period following release from active duty, charging would require a signed waiver acknowledging that period and available free services, declining those services, and agreeing to pay. Attorneys and law firms would instead follow the federal limits cited in the bill. Both parties would have to sign a written fee agreement before services begin.

Nonlawyer paid helpers would face restrictions on customer outreach, personal information, and medical exam providers. The outreach and information restrictions also cover people preparing initial claims for a fee. Attorneys and law firms would follow the separate federal limits. Paid helpers could not use international call centers or data centers to process veterans' personal information or directly access medical, financial, or government benefits login information. They could not aggressively or directly solicit business about veterans' benefits claims. Medical exams could use independent professionals, but not professionals with an employment or business relationship with the helper. People could not advertise or imply that someone is certain to receive specific benefits or a specific benefit level or amount.

Nonlawyer paid helpers would have to explain their lack of government affiliation and the possible availability of free help. These duties cover people and businesses charging for veterans' benefits advice or assistance, apart from attorneys and law firms governed by the separate federal limits. The notice would explain that the business is not sponsored by or affiliated with federal or Kentucky veterans' agencies or federally chartered veterans' service organizations. It would also explain that those organizations do not necessarily endorse its services and that customers may qualify for other benefits. Customers would have to acknowledge understanding the spoken notice and sign the written notice. The written notice would need at least 12-point type and a clearly noticeable place in the agreement. The notice would be required at the start of the business relationship. Helpers would keep a copy during service and for at least one year after the relationship ends.

Nonlawyer paid helpers handling initial disability claims would report to the Kentucky Department of Veterans' Affairs. Reporting covers paid help with initial disability claims. Attorneys and law firms would follow the separate federal limits. Requested reports would give totals for Kentucky veterans served, claim outcomes, average claim return time, and successful benefit increases for veterans with a previously assigned claims representative. Reports would exclude confidential personal information, protected business information, and protected health information. The department could create a reporting form on its website. Violations of the section would count as unfair, false, misleading, or deceptive business practices under Kentucky's consumer protection law. Business names and addresses would be due annually by December 1. Reports of claim results would be due within 120 days of the department's request and cover the reporting year.