WASHINGTON – The Veterans of Foreign Wars (VFW) welcomed a major federal court ruling in North Carolina finding that claims consulting company Veterans Guardian violated federal law by preparing and presenting veterans’ disability claims to the Department of Veterans Affairs (VA) while charging fees and operating without VA accreditation.
In its order, the court stated, “The evidence is undisputed that Guardian is not accredited, that on behalf of veterans it prepares claims forms, that in those forms it presents disability claims for decision by the VA, and that it charges fees for doing so. These actions violate federal law.”
“This is one of the clearest judicial statements we have seen confirming that these companies are acting unlawfully,” said VFW General Counsel John Muckelbauer. “For years, the VFW has argued that unaccredited claims companies cannot avoid federal law simply by calling themselves ‘consultants’ or ‘coaches.’ The court looked beyond the marketing language and focused on the conduct itself.”
The ruling directly rejects the industry’s long-standing argument that fee-charging claims companies operate outside the VA accreditation system because they are not technically representing veterans as “agents.” Instead, the court determined the company’s activities constituted claims representation under existing federal law.
The decision also reinforces the VFW's long-standing position that current federal statutes already prohibit unaccredited entities from charging veterans for assistance with disability claims preparation and submission.
According to materials filed in the certified class action, plaintiffs alleged Veterans Guardian collected more than $250 million from veterans during the class period, underscoring the scale of the issue nationwide.
“This decision should serve as a wake-up call,” said Muckelbauer. “The court made clear these facts were ‘undisputed.’ That matters. It demonstrates that the law is not unclear or outdated, as the industry has repeatedly claimed. Veterans deserve qualified, accredited representation — not companies exploiting loopholes and charging illegal fees.”
The VFW calls on Congress and the VA to use the ruling as a basis for stronger enforcement actions against unaccredited claims actors and to continue opposing state-level efforts aimed at legitimizing fee-charging companies operating outside the VA accreditation framework.
The VFW remains committed to protecting veterans from predatory practices and ensuring they receive free, accredited assistance when navigating the VA claims process.
Read the full federal court decision.