The bill introduces provisions aimed at protecting veterans from deceptive practices related to the assistance they receive in connection with their veterans' benefits claims. These provisions, under the Colorado Consumer Protection Act, make it a deceptive trade practice for certain actions when advising or assisting veterans with their benefits matters.
Key Provisions:
Excessive Compensation:
Compensation for advising, assisting, or consulting veterans regarding their benefits claims is capped at $12,500, with additional limitations linking compensation to the results delivered.
It is prohibited to receive compensation for referring a veteran to a third party or to collect compensation on behalf of a third party assisting with the claim.
No Compensation Without Waiver:
No compensation can be collected in connection with a claim filed within the one-year period following a veteran’s release from active duty unless the veteran has signed a waiver.
Payment Plan and Terms:
Veterans must be given the option of an interest-free payment plan for services.
Payment terms and disclosures must be clearly memorialized in a written, signed agreement.
Guarantee of Results:
It is prohibited to guarantee a successful outcome for a veteran's benefits matter or engage in certain types of direct advertising that implies a guarantee.
Security and Ethical Standards:
Those assisting veterans must take security measures to protect veterans' personal information.
They must also remain in good standing with a national veterans' benefit trade organization that holds members to ethical standards.
Civil Penalties:
Any civil penalties collected for violations of these provisions will be deposited in the Colorado State Veterans Trust Fund to support veterans' services in Colorado.
This bill is designed to protect veterans from fraudulent or unethical practices by individuals or entities offering assistance with veterans' benefits. The measures ensure that veterans are treated fairly, that their personal information is secure, and that they are not subjected to excessive or deceptive charges. By enforcing ethical standards and ensuring transparency, this bill aims to safeguard veterans during the process of securing their rightful benefits.
Summary
The bill makes it a deceptive trade practice under the Colorado
Consumer Protection Act for a person who advises, assists, or consults a veteran, in connection with a claim for veterans' benefits (veterans' benefits matter), to:
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Receive compensation in excess of $12,500 for the service, subject to additional limitations linking permissible compensation to results delivered;
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Receive compensation for referring a veteran to a third party;
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Collect compensation on behalf of a third party engaged to assist with any aspect of a veterans' benefits matter;
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Receive compensation in connection with a claim filed within the one-year period following a veteran's release from active duty without a signed waiver from the veteran;
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Fail to provide a veteran the option of an interest-free payment plan;
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Guarantee a successful outcome in a veterans' benefits matter or engage in certain direct advertising;
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Fail to memorialize the payment terms and certain disclosures in a written, signed business agreement;
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Fail to take various security measures related to veterans' personal information; or
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Fail to remain a member in good standing of a national veterans' benefit trade organization that holds members to ethics and certification standards.
The bill requires the attorney general or district attorney to transmit any civil penalty collected for a violation of the veterans' benefits matter provisions to the state treasurer for deposit in the Colorado state veterans trust fund.
