Forty-three members of Congress are pressing federal agencies to act against unaccredited companies that charge veterans for help filing disability claims with the Department of Veterans Affairs.
In a letter sent to the VA, the Federal Trade Commission and the Consumer Financial Protection Bureau, lawmakers said ‘‘unaccredited representatives — commonly known as claim sharks — charge illegal fees, misrepresent their services, and exploit a loophole in federal law to escape accountability.’’ The letter was signed by 42 Democrats and one Republican.
Current federal rules require anyone helping prepare initial VA disability claims to be accredited by the VA and state that such assistance must be provided for free. Nonprofit veterans service organizations like The American Legion and the VFW have traditionally provided that support. But a 2006 change that removed criminal penalties left a legal gray area that for-profit claims consultants have increasingly exploited, and the number of such firms has risen rapidly over the last decade.
Investigative reporting that prompted the congressional letter detailed how some consulting firms use aggressive and questionable tactics to make money from veterans. The reporting focused in part on Florida-based Trajector Medical, which investigators say used an automated dialing system to call the VA Benefits Hotline — a line intended for veterans — input clients’ Social Security numbers and pull claim updates. Because Trajector is not accredited, the VA does not share veterans’ information with it; investigators say the company used the hotline as a back door to check tens of thousands of claim statuses and then billed veterans when benefits increased.
Veterans and former employees told reporters the company billed clients even when it did not cause the increase, including cases where accredited nonprofits or veterans themselves secured the benefit. Trajector disputes the allegations, says it discloses use of personal information to access VA reporting systems and describes itself as a ‘‘medical evidence provider’’ that does not prepare or file forms. But NPR reviewed pre-filled claim forms Trajector sent to veteran Erik Jensen — a retired Navy diver and nurse — and Jensen said they were already completed when he received them. Trajector charged him $12,000 after his claim succeeded.
Members of Congress asked the VA, the FTC and the CFPB to explain what steps they are taking to protect veterans and enforce existing rules, citing concerns about data privacy, informed consent and veterans’ financial security. Rep. Chris Pappas, who co-authored the letter and co-sponsors the GUARD VA Benefits Act, said coordinated federal action is required; that bill would reinstate penalties removed nearly two decades ago.
A competing bill, the CHOICE for Veterans Act, sponsored by Rep. Jack Bergman, would instead limit what claims firms can charge, capping fees at $12,500. While lawmakers debate policy, the VA’s enforcement options appear limited largely to warning letters. NPR and nonprofit newsroom The War Horse obtained VA letters sent to roughly 40 claims companies, including Trajector, but many firms remain in operation.
Rep. Don Bacon of Nebraska was the lone Republican signer of the congressional letter. Retired Army Colonel Paul Kantwill, who formerly led the CFPB’s Office of Servicemembers Affairs, said complaints like these would be a top priority if he still ran that office and urged regulators to take the issue seriously.
