VA Claims Agent Exam PrepVA OGC fee review petition: how fee disputes are decided
Quick answer: VA's Office of General Counsel reviews agent and attorney fees under 38 CFR 14.636(i). A fee up to 20 percent of past-due benefits is presumed reasonable; a fee over 33 1/3 percent is presumed unreasonable. When a decision awards past-due benefits, the agency issues a fee allocation notice, and any party who disagrees with it has 60 days to petition OGC for review. OGC can also open a review on its own motion, with no complaint required.
TL;DR
- 20 percent or less of past-due benefits: presumed reasonable. Over 33 1/3 percent: presumed unreasonable.
- Fee allocation notice triggers a 60-day window to request OGC review.
- OGC can start a review on its own initiative at any time.
- Direct pay is capped at 20 percent and costs you a 5 percent VA assessment (max $100).
- OGC decisions are appealable to the Board of Veterans' Appeals.
The two presumptions that frame every fee
Section 14.636(f)(1) draws the two lines every agent must know. If your fee does not exceed 20 percent of past-due benefits, and your representation continued through the date of the decision awarding benefits, the fee is presumed reasonable. If your fee exceeds 33 1/3 percent of past-due benefits, it is presumed unreasonable. Both presumptions are rebuttable: the other side can overcome them with clear and convincing evidence based on the reasonableness factors. Between the two lines sits a gray zone where the factors decide everything, which is why the smartest practice is to price at or under 20 percent and keep records that would defend the fee anyway. Our 20 percent rule guide walks through the math.
What OGC actually weighs: the ten reasonableness factors
When a presumption is challenged, or when OGC reviews a fee on its own, the decision runs through the ten factors in 38 CFR 14.636(e): the extent and type of services performed, the complexity of the case, the skill and competence the work required, the time spent, the results achieved (including benefits recovered), the level of review reached and the level at which the agent was retained, going rates charged by other agents and attorneys, whether the fee is contingent on results, why an agent was discharged or withdrew before the award (if that happened), and any other agent's or attorney's fee entitlement in the case. Document as you go: a time log and a short memo of what you did at each stage are the cheapest insurance an agent can buy.
Past-due benefits: the base your percentage is measured against
"Past-due benefits" is a defined term, not a vibe. Under 38 CFR 14.636(h)(3), it means the nonrecurring payment from a benefit granted on appeal or awarded on readjudication after a denial, or the lump sum of recurring payments that accrued between the effective date of the award and the date of the grant. For a service-connection grant, the base runs from the effective date to the initial rating decision; if you later win an increased evaluation on appeal, a supplemental payment is calculated on the increase. Your 20 percent is measured against this base, not against future monthly payments.
Direct pay vs. collecting it yourself
A direct-pay fee agreement lets VA withhold your fee from the claimant's past-due benefits and pay you directly. VA honors it only if four conditions in 38 CFR 14.636(h)(1) are met: the fee is 20 percent or less of past-due benefits, the fee is contingent on a favorable outcome, you were accredited on the date of the fee allocation notice, and the award produces a cash payment the fee can be deducted from. VA also charges a 5 percent assessment on the fee, capped at $100, for the direct-pay service. Direct-pay agreements must be filed with the agency of original jurisdiction within 30 days of execution; non-direct-pay agreements go to OGC instead, under 38 CFR 14.636(g)(3). Anything that does not clearly specify direct pay, or that exceeds 20 percent, is treated as a collect-it-yourself agreement with no VA assistance. See our direct pay checklist before you sign one.
The fee allocation notice and the default outcomes
When past-due benefits are awarded in a case with direct-pay agreements on file, the agency of original jurisdiction issues a fee allocation notice to the parties under 38 CFR 14.636(i)(1). The notice decides who is eligible for direct payment and applies one of two default allocations: if a continuous agent or attorney (one whose representation ran through the award date) is eligible, the fee defaults to that agent; otherwise, the default is an equal split among the eligible agents and attorneys plus the claimant. If nobody objects in time, the default is final and VA releases the fee. Disagreeing with eligibility is a different path: that goes to the Board of Veterans' Appeals, not to OGC fee review.
How to file the petition: the 60-day clock
A party that disagrees with the default allocation may request OGC fee review under 38 CFR 14.636(i)(2) and (3), and the request must be timely filed, which means within 60 days of the fee allocation notice. The request must include the veteran's and all parties' names, the VA file number, the date of the decision awarding benefits, your proposed reasonable allocation, your reasons, and all argument and evidence you want considered. File electronically per the instructions on OGC's website, or mail it to Office of the General Counsel (022D), 810 Vermont Avenue NW, Washington, DC 20420. OGC's accreditation page adds a practical shortcut: for fee allocation notices issued on or after April 1, 2025, requests may be emailed to [email protected] with the subject "Fee Review Request," or faxed to (202) 495-5909. After OGC initiates the review, other parties have 30 days to respond, with service on all other parties, under 38 CFR 14.636(i)(4).
OGC can act on its own, and noncompliance has teeth
You do not need a complaint to end up in fee review. Under 38 CFR 14.636(i)(4), the Deputy Chief Counsel with subject-matter jurisdiction initiates the review upon a timely party request or upon his or her own initiative. Separately, 38 CFR 14.636(j) provides that failure to comply with the fee rules can trigger proceedings under 38 CFR 14.633 to terminate accreditation. The OGC decision itself is a final adjudicative action appealable only to the Board of Veterans' Appeals under 38 CFR 14.636(i)(6), and until the appeal window closes, the parties must allocate any excess payment per the decision. Bottom line: price within the 20 percent line, put every fee term in a signed written agreement, and treat the allocation notice like the legal deadline it is.
Fee reasonableness estimator
Enter the past-due benefits and the fee you plan to charge. The tool shows where you land against the 20 percent and 33 1/3 percent lines. For illustration only, not legal advice.
Frequently asked questions
What is the 20 percent rule for VA claims agent fees?
Under 38 CFR 14.636(f)(1), a fee that does not exceed 20 percent of past-due benefits is presumed reasonable when the agent's representation continued through the date of the decision awarding benefits. A fee over 33 1/3 percent is presumed unreasonable. Both presumptions can be rebutted with clear and convincing evidence.
Can OGC review my fee even if the claimant never complains?
Yes. Under 38 CFR 14.636(i)(4), the Deputy Chief Counsel may initiate a fee review on his or her own initiative, without waiting for a request from any party. OGC can also open termination proceedings under 38 CFR 14.633 if an agent fails to follow the fee rules.
How do I challenge a fee allocation notice?
File a request for OGC fee review within 60 days of the fee allocation notice. OGC's accreditation page says requests for notices issued on or after April 1, 2025 may be emailed to [email protected] with the subject Fee Review Request, or faxed to (202) 495-5909. Include the veteran's and parties' names, the VA file number, the decision date, your proposed allocation, your reasons, and your evidence.
What is the difference between direct pay and a regular fee agreement?
A direct-pay agreement lets VA pay your fee straight out of past-due benefits, but only if the fee is 20 percent or less, is contingent on a favorable outcome, and the award produces a cash payment. VA also withholds a 5 percent assessment, capped at $100. Any other agreement means you collect from the client yourself without VA's help.
What counts as past-due benefits?
Under 38 CFR 14.636(h)(3), past-due benefits are the nonrecurring payment from a benefit granted on appeal or on readjudication after a denial, or the lump sum of recurring payments that accrued between the effective date and the grant date. It is the base your fee percentage is measured against.
What happens if OGC decides my fee was unreasonable?
OGC issues a written decision applying the reasonableness factors in 38 CFR 14.636(e). The decision is a final adjudicative action that can be appealed to the Board of Veterans' Appeals. Separately, serious fee violations can trigger accreditation termination proceedings under 38 CFR 14.633.