Two Agreement Types, Two Different Filing Destinations
Where you file a VA fee agreement depends entirely on which type of agreement it is. Getting this wrong does not just create an administrative headache. It can affect how and whether fees get paid.
Direct-pay agreements, where VA pays the attorney or agent directly out of past-due benefits, go to the VBA Regional Office that serves as the agency of original jurisdiction (AOJ) for the claim. Non-direct-pay agreements go to OGC at 810 Vermont Avenue NW, Washington, DC 20420. These are separate offices with separate review functions, and filing at the wrong address does not fix itself.
38 CFR § 14.636[1]The December 29, 2015 final rule amending 38 CFR § 14.636(g) and (h) is what moved direct-pay filing to the Regional Office. Before that rule, the landscape was different. Firms that built their intake process before 2016 should confirm their current process reflects the change.
VA OGC – Accreditation, Discipline, and Fees Program[2]One more wrinkle: fee agreements should be filed in only one VA location. Do not file a direct-pay agreement at both the Regional Office and OGC. The agreement type determines the destination.
VA OGC – Accreditation FAQs[3]The 30-Day Filing Deadline for Direct-Pay Agreements
A direct-pay fee agreement must be filed with the AOJ within 30 days of execution.
38 CFR § 14.636[1]The execution date is the date the parties entered a legally binding contract under applicable state law. That is the clock start, not the date the agreement was drafted, not the date a signed copy arrived in your inbox.
VA OGC – Accreditation FAQs[3]In practice, this means firms need a system. Agreements that get signed and then sit in a queue waiting for staff to process them are at risk. A single claim with a missed deadline creates accreditation exposure. Multiply that across a high-volume intake operation and the compliance problem becomes real.
The regulation does not carve out exceptions for agreements filed a few days late. Late filing can trigger accreditation termination proceedings under 38 CFR § 14.636. The consequence is not a warning letter. It is a proceeding that can end your ability to receive direct payment.
What Qualifies as a Direct-Pay Agreement
The agreement must explicitly state that VA will pay the attorney or agent out of past-due benefits. This is not a drafting nicety. It is a regulatory threshold.
An agreement that does not clearly specify this is treated as a non-direct-pay agreement, regardless of what the parties intended.
38 CFR § 14.636[1]That default classification has consequences. The filing destination changes. The fee collection mechanism changes. And if the agreement was filed with the Regional Office thinking it was a direct-pay agreement, the firm is in the wrong place with the wrong document.
Review your template language. If it describes how fees are calculated without expressly stating that VA will make payment from past-due benefits, revise it before the next agreement goes out.
Direct-pay fees are also capped at 20% of past-due benefits.
VA OGC – Tips on Fee Agreements for Veterans Claims[4]That cap is not negotiable on a direct-pay agreement. Any agreement setting a higher percentage on a direct-pay arrangement is void as to the excess, and could itself trigger a fee review or challenge.
Prerequisites for Charging Any Fee
Three conditions must all be present before a VA-accredited attorney can charge a fee at all.
First, VA must have issued an initial decision on the claim. An attorney cannot charge fees for representing a claimant before VA issues that first decision.
Second, a signed VA Form 21-22a (Appointment of Individual as Claimant's Representative) must be on file.
Third, a written fee agreement must exist.
VA OGC – How to Challenge a Fee[5]All three must be present. Missing one of them means any fee charged at that stage is impermissible. For firms doing intake review, these three conditions are what staff should confirm before any representation work begins that is billed to the client under the fee agreement.
The initial decision requirement is sometimes misread. It does not mean a favorable decision. It means VA has issued any decision on the underlying claim. Once that decision exists, the fee-eligibility clock can run.
Related guides
Vendorization and the VA Financial Management System
Attorneys and agents receiving direct payment from VA must be vendorized with VA's Financial Management System. The form is VA Form 10091 (VA-FSC Vendor File Request Form).
VA OGC – Accreditation, Discipline, and Fees Program[2]Vendorization is separate from accreditation. A fully accredited attorney who has not completed the vendorization process cannot receive direct payment from VA even if the fee agreement is properly filed and approved. The Regional Office cannot issue payment to a vendor that does not exist in the Financial Management System.
Do this before the first direct-pay case reaches a decision stage. Waiting until an award is issued and then scrambling to complete vendorization creates delays in fee payment and can complicate the post-award process at the Regional Office.
M21-5, Chapter 8, Section B[6]For firms with multiple attorneys, each attorney who will appear as the representative on direct-pay agreements needs their own vendorization. Check this during onboarding, not after the first award.
Agreement Content Restrictions
Fee agreements under 38 CFR § 14.636 cannot include certain provisions, and including them does not just make the offending clause unenforceable. It can put the entire agreement and the attorney's accreditation at risk.
The main prohibitions:
- The agreement cannot restrict VA's ability to communicate directly with the veteran or claimant.
- The agreement cannot impose a penalty on the claimant for discharging the attorney or agent.
- The agreement cannot require the claimant to waive rights related to accreditation or fee oversight.
The restriction on VA contact with the veteran is an area where template agreements from general civil practice sometimes cause problems. A contingency fee agreement drafted for personal injury work may include language directing all client communication through counsel. That language is fine in state court. It is prohibited in VA practice.
Attorneys who use form agreements across multiple practice areas should have those templates reviewed specifically against 38 CFR Part 14 before using them for VA representation.
38 CFR Part 14[7]Fee Review and Challenge Process
After VA issues a decision awarding past-due benefits on a direct-pay claim, the AOJ issues a fee notice containing a fee eligibility determination. That notice triggers the challenge window.
After VA issues a decision awarding past-due benefits on a direct-pay claim, the AOJ issues a fee notice containing a fee eligibility determination. That notice triggers the challenge window. For a detailed look at how VA withholds and remits those fees once the award issues, including the prior-denial eligibility gate and subperiod adjustments for incarceration, see the direct pay guide.
Federal Register – Fee Reasonableness Reviews (Dec. 21, 2023)[8]A motion for review of the fee must be filed within 120 days of the fee eligibility decision. The motion must include proof of service on the attorney or agent.
Once the motion is filed, the attorney or agent has 30 days to respond. The claimant then has 15 days to reply after the attorney's response.
VA OGC – How to Challenge a Fee[5]OGC conducts the fee review. This is a separate function from the Regional Office's fee eligibility determination. OGC evaluates whether the fee is clearly unreasonable under the standards in 38 CFR § 14.636.
From the firm's perspective, the practical implication is that every direct-pay case needs clean documentation: a properly filed agreement, a clear fee calculation tied to past-due benefits, and a record that the three prerequisites were met before fees were charged. That documentation is what the firm will need to produce if a fee is challenged.
Accreditation Risk for Noncompliance
Failure to comply with the filing and content requirements of 38 CFR § 14.636 can trigger proceedings to terminate the attorney's or agent's accreditation.
38 CFR § 14.636[1]Termination of accreditation has a direct effect on direct payment eligibility. A proposed rulemaking published December 21, 2023 addressed the relationship between loss of accreditation and direct payment, making clear that the connection between accreditation status and fee collection is not purely administrative.
Federal Register – Fee Reasonableness Reviews (Dec. 21, 2023)[8]For firm operators, this means fee agreement compliance is not just a billing issue. It is an accreditation issue. A pattern of late filings, prohibited agreement provisions, or misfiled agreements can become the basis for an OGC disciplinary proceeding. That proceeding affects every case the attorney handles, not just the one that triggered the review.
The safest approach is to treat fee agreement execution, filing, and vendorization as a structured intake checklist item, the same way firms treat getting the 21-22a signed. The deadline is fixed, the filing location is specific, and the consequences of error are serious.
Common questions
Where do I file a direct-pay VA fee agreement?
File it with the VBA Regional Office (the agency of original jurisdiction for the claim), not with OGC. This rule was confirmed in a December 2015 final rule amending 38 CFR § 14.636(g) and (h).
How long do I have to file a direct-pay fee agreement after signing it?
30 days from the date of execution. The agreement is considered effective on the date the parties entered a legally binding contract under applicable state law.
What happens if my fee agreement does not clearly state that VA will pay out of past-due benefits?
VA treats it as a non-direct-pay agreement regardless of intent. That changes where it must be filed and how fees are collected.
Do I need a fee agreement for representation before the Court of Appeals for Veterans Claims?
VA does not require a fee agreement for representation solely before CAVC. If the agreement also covers representation before the Regional Office or BVA, OGC must receive a copy.
What are the three conditions VA requires before an attorney can charge any fee at all?
VA must have issued an initial decision on the claim, a signed VA Form 21-22a must be on file, and a written fee agreement must exist. All three must be present.
Track fee agreement filing deadlines inside your case workflow
Flag filing deadlines, organize representation documents, and keep fee agreement status visible across the caseload. See how it fits your intake process.
Citations
- 38 CFR § 14.636 (38 CFR § 14.636)
- VA OGC – Accreditation, Discipline, and Fees Program
- VA OGC – Accreditation FAQs
- VA OGC – Tips on Fee Agreements for Veterans Claims
- VA OGC – How to Challenge a Fee
- M21-5, Chapter 8, Section B
- 38 CFR Part 14 (38 CFR Part 14)
- Federal Register – Fee Reasonableness Reviews (Dec. 21, 2023)