HB 25-1233

House Bill 25-1233, titled "Veterans Benefits Claims Consumer Protections," aims to protect veterans by setting strict rules for professionals who help them with claims for benefits. The bill limits how much these advisors can charge and requires them to provide clear agreements and secure handling of personal information. It also bans certain unethical practices like guaranteeing success or collecting fees upfront without a signed waiver from the veteran. Since it has been signed, this law is now in effect and helps ensure that veterans receive fair and ethical assistance when applying for benefits.

Official 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: Receive compensation in excess of $12,500 for the service, subject to additional limitations linking permissible compensation to results delivered; Receive compensation for referring a veteran to a third party; Collect compensation on behalf of a third party engaged to assist with any aspect of a veterans' benefits matter; 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; Fail to provide a veteran the option of an interest-free payment plan; Guarantee a successful outcome in a veterans' benefits matter or engage in certain direct advertising; Fail to memorialize the payment terms and certain disclosures in a written, signed business agreement; Fail to take various security measures related to veterans' personal information; or 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. (Note: This summary applies to this bill as introduced.)