VA Claims Agent Exam PrepA VA claims agent does not have a set price list, and VA does not set prices for them. What the law does is draw a box around fees: they must be reasonable, a fee of 20 percent or less of past-due benefits is presumed reasonable, a fee over 33 1/3 percent of past-due benefits is presumed unreasonable, and fees are allowed only for representation provided after the agency of original jurisdiction issues notice of its initial decision on the claim. Those rules come from 38 U.S.C. 5904 and 38 CFR 14.636. This page explains each one and gives you a calculator for the math.
The 20 percent rule is the practical ceiling
Under 38 CFR 14.636(f)(1), a fee that does not exceed 20 percent of any past-due benefits awarded is presumed reasonable, where the agent or attorney provided representation through the date of the decision awarding benefits. In practice, nearly every fee agreement in VA practice is written at exactly 20 percent of past-due benefits, because the presumption does the legal work: nobody has to prove the fee is fair, and a challenger would have to prove it is not. The flip side matters too. A fee over 33 1/3 percent of past-due benefits is presumed unreasonable. Between the two lines, the fee is judged on its facts against the reasonableness factors.
What "past-due benefits" means
Past-due benefits are the retroactive benefits awarded on the claim: the lump sum covering the period from the effective date of the claim to the date of the decision. Example: a veteran's claim has an effective date of January 2023, VA grants it in June 2025, and the retroactive award is $30,000. A 20 percent fee would be $6,000. The presumption applies to that lump sum, not to future monthly benefits. And no award means no past-due benefits and no fee base, which is why most agents work on a contingent basis: if the claim does not succeed, there is no fee.
When fees are allowed at all
The 20 percent rule does not mean an agent can charge from the first phone call. In most cases, under 38 U.S.C. 5904(c)(1) and 38 CFR 14.636(c), agents and attorneys may charge only for representation provided after the agency of original jurisdiction has issued notice of its initial decision on the claim, and only if they have complied with the power of attorney and fee agreement requirements. For legacy claims with decision notices before February 19, 2019 (the modernized review system effective date), fees require a Notice of Disagreement filed on or after June 20, 2007. OGC's own FAQ says agents may not charge for preparing a claims form. Two exceptions exist: chapter 37 home loan cases, and representation paid for by a disinterested third party. The full timing rules are in the fees guide.
What makes a fee reasonable
Reasonableness is judged on the factors in 38 CFR 14.636(e): the extent and type of services performed, the complexity of the case, the skill and competence required, the time spent, the results achieved including the amount of benefits recovered, the level of review reached and when the agent was retained, rates charged by others for similar services, whether the fee is contingent, and the circumstances of any prior representative's discharge. Fees may be based on a fixed fee, an hourly rate, a percentage of benefits recovered, or a combination. The fee must also be agreed to in writing by the claimant; VA can review fee agreements, and the written agreement is part of the conditions for charging fees at all.
Fee calculator: the 20 percent and 33 1/3 percent lines
Enter a past-due benefits amount to see the two lines the regulation draws. This is arithmetic on the regulation's presumptions, not legal advice and not a fee quote.
VA claims agent fee calculator
20 percent, presumed reasonable:
33 1/3 percent, presumed unreasonable above this:
Between these lines, reasonableness is judged on the facts under 14.636(e). Fees also require a written fee agreement and are allowed only for representation after notice of the initial decision in most cases.
| Fee situation | What the rule says |
|---|---|
| 20 percent or less of past-due benefits | Presumed reasonable (38 CFR 14.636(f)(1)) |
| Over 33 1/3 percent of past-due benefits | Presumed unreasonable (38 CFR 14.636(f)(1)) |
| Fees before the initial decision notice | Not allowed in most cases (38 U.S.C. 5904(c)(1)) |
| Charging to prepare a claim form | Not allowed (OGC FAQ) |
| VSO representative charging a fee | Not allowed when acting as a VSO rep (38 CFR 14.636(b)) |
| No written fee agreement | Fee conditions not met (38 CFR 14.636(c), (g)) |
Who can charge, and who cannot
Only accredited agents and attorneys may receive fees from claimants for representation. Recognized organizations, including their accredited representatives when acting as such, may not receive fees, which is why VSO representation is free. An agent who is also an accredited VSO representative may only charge fees when properly designated as an agent in their individual capacity. And before any fee can be charged, the agent needs a power of attorney (VA Form 21-22a) on file for the claimant and a written fee agreement. Veterans who want representation at no cost should look to a VSO representative; veterans who want a paid agent should confirm accreditation first using the OGC accreditation search.
Frequently asked questions
How much can a VA claims agent charge?
There is no fixed price in the law. Every fee must be reasonable, judged on factors like the services performed, the complexity of the case, and the results achieved, under 38 CFR 14.636(e). The practical ceiling is 20 percent of past-due benefits: a fee at or below that level is presumed reasonable, and a fee over 33 1/3 percent of past-due benefits is presumed unreasonable, under 38 CFR 14.636(f)(1).
What is the 20 percent fee rule for VA claims agents?
Under 38 CFR 14.636(f)(1), a fee that does not exceed 20 percent of any past-due benefits awarded is presumed to be reasonable, when the agent or attorney provided representation through the date of the decision awarding benefits. It is a presumption, not a hard cap: a higher fee is not automatically illegal, it just loses the presumption and must be justified under the reasonableness factors.
What are past-due benefits?
Past-due benefits are the retroactive benefits awarded on the claim: the lump sum covering the period from the effective date of the claim to the date of the decision. The 20 percent presumption applies to that lump sum, not to future monthly benefits. No award means no past-due benefits and no fee base.
When can a VA claims agent start charging fees?
In most cases, only for representation provided after the agency of original jurisdiction issues notice of its initial decision on the claim, under 38 U.S.C. 5904(c)(1) and 38 CFR 14.636(c). For legacy claims decided before February 19, 2019, fees require a Notice of Disagreement filed on or after June 20, 2007. Agents may not charge for preparing an initial claim or claim form.
Does a VA claims agent need a written fee agreement?
Yes. The fee must be agreed to in writing by the claimant, and the agent must also comply with the power of attorney requirements. VA can review fee agreements, and a written agreement is part of the conditions for charging fees under 38 CFR 14.636(c) and (g).
Are VSO representatives free?
Yes. Accredited representatives of recognized veterans service organizations, when acting as such, are not permitted to receive fees from claimants, under 38 CFR 14.636(b). Only accredited agents and attorneys may charge fees for representation. If you want representation at no cost, a VSO representative is the path.
Sources
Checked October 7, 2026. Primary sources unless marked SECONDARY.