Committee advances bill to penalize non‑accredited paid preparers for veterans’ benefit claims

A South Carolina Senate committee on the first day of its 2026 session voted to report Senate Bill 695, the South Carolina Safeguarding American Veterans Benefits Act, favorably to the full Senate after adopting an amendment that clarifies how to judge fees charged for filing veterans’ benefit claims.

Secretary McCaffrey, sworn in to testify, told the committee the bill seeks to prevent non‑accredited individuals from charging veterans for initial Veterans Benefit Administration claims and to require that any compensated preparer memorialize fee terms. "We call those individuals claim sharks," he said, describing people who charge veterans hundreds of dollars for services that accredited veteran service organizations or county officers provide for free. He emphasized that accredited attorneys and VA‑accredited organizations would not be affected.

The committee adopted an amendment to Section 2 intended to give greater clarity about nine factors—drawn from a U.S. Department of Veterans Affairs publication—that would help determine whether a fee is excessive or unreasonable. The amendment also clarifies what a written agreement between a representative and a veteran should include.

During questions, senators pressed whether unsolicited donations or gifts could be treated as prohibited transactions; Secretary McCaffrey responded that donations to legitimate 501(c)(3) organizations remain permissible and that the bill focuses on traditional fee transactions. He also described the federal accreditation process and noted technical barriers such as obtaining VA system access (PIV cards) for newly accredited staff.

The committee adopted the amendment, then voted with no recorded opposition to report S.695 favorably to the full Senate as amended. The chair said the amendment language was drawn from VA guidance to promote clarity in enforcement. The bill now moves to the full Senate for further consideration.