The proposed bill, HB25-1047, seeks to enhance protections for individuals seeking assistance with veterans' benefits claims in Colorado by establishing certain practices as deceptive trade practices under the Colorado Consumer Protection Act. Key provisions include:
Prohibited Practices:
Soliciting, contracting for, charging, or receiving compensation for providing assistance with veterans' benefits claims, unless the charges are reasonable and permissible under federal law.
Charging for referrals to others for assistance with veterans' benefits matters.
Guaranteeing a particular outcome in a veterans' benefits matter.
Failing to memorialize all terms regarding payment of fees in a written, signed agreement.
These measures aim to protect veterans from potential exploitation and ensure that those assisting with their claims adhere to ethical standards.
Summary
Federal law governs whether, when, and how much a service
provider may charge for preparing, presenting, or prosecuting a claim for veterans' benefits (veterans' benefits matter). However, criminal penalties for violations of the federal law are no longer in force.
The bill makes it a deceptive trade practice under the Colorado
Consumer Protection Act for a person to:
•
Solicit, contract for, charge, or receive compensation for providing certain services to an individual claiming veterans' benefits (individual), unless the charges are reasonable and otherwise permissible under federal law;
•
Charge for a referral for assistance with a veterans' benefits matter;
•
Guarantee a particular outcome in a veterans' benefits matter; or
•
Fail to memorialize in a written, signed agreement all terms regarding an individual's payment of fees for the service.
