A new bipartisan bill in Congress aims to curb predatory collection practices by so‑called “claim sharks” — for‑profit companies that charge disabled veterans large sums for help claiming benefits with the Department of Veterans Affairs. The measure would bar companies from using auto‑dialers to call federal agencies.
Sponsored by Rep. Chris Pappas (D‑N.H.), Rep. Don Bacon (R‑Neb.) and two other Republicans, the legislation was prompted by a 2025 NPR investigation of Trajector Medical. That reporting showed the Florida company used auto‑dialer software to access a VA benefits hotline intended for veterans, monitoring benefit payments for thousands of clients — often without their clear knowledge — and automatically billing veterans when their payments increased.
“It’s crazy what these guys are trying to get away with,” Pappas told NPR. He said using a robo‑dialer to hit government lines repeatedly and then billing veterans when eligibility changes is “outrageous.” Bacon, a retired Air Force brigadier general, said the bill “takes a commonsense approach to crack down on predatory practices and protect veterans from exploitation.”
Trajector and similar claims firms operate in a legal gray area. Federal law bans charging veterans for help filing initial disability claims — services the VA and accredited nonprofits provide for free — but civil penalties were removed from that prohibition about two decades ago, limiting federal regulators’ tools to enforce the rule or punish violators. Trajector told NPR it supports the legislation and that it “relies on happy clients to self‑report their successes due to our medical evidence services.”
Pappas is also the sponsor of separate legislation to reinstate civil penalties and effectively ban for‑profit claims consultants nationwide. The industry views that bill as an existential threat and has lobbied for a competing proposal that would legalize the industry and cap fees at $12,500. Both bills remain stalled in the House Committee on Veterans’ Affairs.
The new auto‑dialer approach targets what could be an industry weakness by outlawing the technology many firms use to generate revenue. Former Trajector employees told NPR the company’s “CallBot” places tens of thousands of calls each month to a VA phone line used by veterans to check claim status and monthly payments. CallBot allegedly responds to automated prompts, inputs veterans’ Social Security numbers and birthdates, detects increases in disability ratings, and triggers automated billing.
Trajector says it discloses this practice to veterans, but many veterans told NPR they did not understand the company was monitoring them in this way. The resulting bills can range from a few hundred dollars to more than $20,000. Without the hotline dialing, firms like Trajector would have to rely on veterans to voluntarily report VA decisions; Trajector’s stated fee is a one‑time charge equal to five times the increase in monthly VA pay after filing.
Because the bill would amend telecommunications law, it has been referred to the House Committee on Energy and Commerce.
After NPR’s December reporting, 40 members of Congress signed a letter urging the VA, Consumer Financial Protection Bureau and Federal Trade Commission to act against predatory claims companies; Pappas said the agencies have not responded. In the absence of decisive federal action, states have moved to regulate the industry. California’s governor signed a bill in February that will impose penalties next year on firms charging veterans for initial disability claim assistance. In Louisiana, the state’s PLUS Act — which had allowed companies to charge up to $12,500 — was struck down by a federal court in February; the state’s attorney general plans to appeal.
A federal lawsuit filed in California this month alleges Trajector failed to obtain knowing consent from veterans and did not adequately disclose how CallBot uses personally identifying information. Trajector called the suit meritless and said it operates within the law.
