A group of 43 members of Congress is urging action against unaccredited companies that charge veterans for help filing disability benefits with the Department of Veterans Affairs.
The push follows reporting showing the claims consulting industry uses aggressive tactics to profit from veterans, despite VA lawyers warning some practices may violate federal law. In a letter to the VA, the Federal Trade Commission and the Consumer Financial Protection Bureau, the lawmakers wrote that “unaccredited representatives — commonly known as claim sharks — charge illegal fees, misrepresent their services, and exploit a loophole in federal law to escape accountability,” and called the practices “a deeply disturbing escalation.”
The letter was signed by 42 Democrats and one Republican.
Federal law requires anyone helping veterans prepare initial disability claims to be accredited by the VA and that services be provided for free. Nonprofit veterans service organizations such as The American Legion and VFW have long offered that support. But in 2006 Congress removed criminal penalties from the law, creating a legal gray area that entrepreneurs have exploited. The number of for-profit claims consulting firms has grown rapidly over the past decade.
Some veterans say paid help produced larger awards; others say they were exploited. Lawmakers highlighted a practice uncovered by reporting in which companies use veterans’ private information to access VA systems and track benefits. NPR’s investigation into Florida-based Trajector Medical found the company used a computerized dialing system to call the VA Benefits Hotline — a line intended for veterans — entering clients’ Social Security numbers to pull claim updates. Because Trajector is not accredited, the VA does not share veterans’ information with it, so the company reportedly used the hotline as a back door to check tens of thousands of veterans’ claim statuses and then billed veterans when an increase occurred.
Veterans and former Trajector employees told reporters the company billed veterans even when it had not caused the increase, including in cases where accredited nonprofits or the veterans themselves had secured the benefit. Trajector denies wrongdoing and says it discloses use of personal information to access VA “reporting systems,” calling itself a “medical evidence provider” that does not prepare or file forms. Yet NPR reviewed 28 pages of pre-filled claim forms Trajector sent to veteran Erik Jensen, a retired Navy diver and nurse, which he said were already filled out. Trajector charged Jensen $12,000 when his claim succeeded.
The members of Congress asked the agencies to report on steps they are taking to protect veterans and enforce the law, saying the tactics raise serious questions about data privacy, informed consent and financial security. New Hampshire Rep. Chris Pappas, who co-authored the letter and co-sponsors the GUARD VA Benefits Act, said aggressive and coordinated federal action is needed. The GUARD bill would reinstate penalties removed nearly two decades ago. It faces a legislative standoff with the competing CHOICE for Veterans Act, sponsored by Republican Rep. Jack Bergman, which instead would cap what claims firms can charge at $12,500.
While Congress debates, the VA’s enforcement options are limited largely to warning letters. NPR and nonprofit newsroom The War Horse obtained VA letters sent to about 40 claims companies, including Trajector, but many of those firms continue to operate.
Rep. Don Bacon of Nebraska, a retired Air Force brigadier general, was the lone Republican signatory on the congressional letter. Retired Army Colonel Paul Kantwill, who once led the Office of Servicemembers Affairs at the Consumer Financial Protection Bureau, said such complaints would be a top priority if he still ran that office and should be taken very seriously.