Congressional Group Urges Action Against Unaccredited Veteran Claims Companies
A coalition of 43 members of Congress has called for regulatory action against unaccredited companies that charge veterans for assistance in filing disability benefits claims with the Department of Veterans Affairs (VA). This congressional appeal follows recent reporting from NPR, which detailed the operational methods of the claims consulting industry.
Industry Practices and Regulatory Concerns
The congressional group, comprising 42 Democrats and one Republican, sent a letter to the VA, the Federal Trade Commission (FTC), and the Consumer Financial Protection Bureau (CFPB). The letter highlights concerns regarding unaccredited representatives, referred to as "claim sharks," who allegedly charge illegal fees, misrepresent services, and exploit a legal loophole. Federal law stipulates that individuals assisting veterans with initial disability claims must be accredited by the VA and offer their services free of charge. In 2006, Congress removed criminal penalties associated with violations of this law, which has led to the growth of non-accredited claims consulting firms.
Investigation Findings Regarding Company Operations
NPR's investigation revealed specific business practices, including some companies reportedly utilizing veterans' private information to access VA systems. Trajector Medical, a Florida-based firm, was identified as using an automated system to access the VA Benefits Hotline. This system reportedly uses veterans' Social Security numbers to retrieve claim updates for past clients. Trajector Medical has then reportedly billed veterans upon identifying benefit increases, even in situations where the company's role in securing the increase was disputed by the veterans.
Trajector Medical has denied wrongdoing, stating its mission is to assist veterans in receiving benefits. The company clarifies that its contracts inform veterans of its intent to use personal information to access VA "reporting systems" and asserts its role as a "medical evidence provider," not a form preparer or filer. However, one veteran, Erik Jensen, reported receiving pre-filled disability claim forms from Trajector and was subsequently charged $12,000 following a successful claim.
Legislative Efforts and Agency Response
Lawmakers have raised questions concerning data privacy, informed consent, and financial security related to these company tactics. Congressman Chris Pappas (D-NH) is a co-sponsor of the GUARD VA Benefits Act, a bill aimed at reinstating penalties removed in 2006. This legislation currently faces a stalemate with the CHOICE for Veterans Act, sponsored by Congressman Jack Bergman (R-MI), which proposes a $12,500 cap on fees charged by claims consulting firms.
While Congress addresses these legislative proposals, the VA's current enforcement options are largely limited to issuing warning letters to companies, many of which continue operations. The congressional letter requests that the VA, FTC, and CFPB report on their measures to protect veterans and uphold federal law. Paul Kantwill, who previously led the Office of Servicemember Affairs at the Consumer Financial Protection Bureau, indicated that such complaints would be prioritized within that office.