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Senator introduces bill to limit predatory 'claim sharks' targeting veterans; opponents cite pending federal appeal
Summary
SB208 would regulate non‑federally accredited agents who charge veterans high fees on disability claims and create state civil remedies; opponents told the committee the issue is entangled with a recent court decision and pending Fifth Circuit briefing.
Senator Kathy introduced SB208 to protect Louisiana veterans from unaccredited agents who charge excessive fees for assistance with VA disability claims. The bill limits its reach to actors who are not already regulated by the federal government and adds state civil remedies for negligence, recklessness or fraud.
"These are unaccredited... companies that swoop in and charge predatory exorbitant fees," Senator Kathy said, framing the bill as a targeted protection for veterans who otherwise rely on accredited service officers and attorneys.
John Wells, executive director of Military Veterans Advocacy, testified in opposition and asked lawmakers to consider the pending federal litigation. Wells said his organization brought the suit that resulted in Act 479 being struck down and noted the attorney general must brief the Fifth Circuit by June 20. "The court... found it was preempted because it was a violation of federal law," Wells told the committee, urging sponsors to await appellate guidance before substantial state action.
Senator Kathy and other backers said the bill is narrowly tailored to regulate only those not already governed by federal accreditation rules and to provide veterans a state remedy against unscrupulous actors. "This just put some protections in the law at the state level to keep unaccredited people from... taking advantage of veterans," Senator Kathy said.
Committee members recorded no objections and moved SB208 favorably. Members asked sponsors and counsel to be mindful of federal preemption questions and to coordinate with the attorney general's office as the appeal proceeds.
What happens next: SB208 was reported favorably out of committee and will be scheduled for further consideration. The committee record includes testimony about the ongoing appeal; sponsors were asked to confirm statutory language that limits overlap with federally regulated actors.
